The Silver Britannia is capital gains tax free in the UK, making is a very popular choice with UK investors
See All
Silver, one of the most versatile precious metals, plays a significant role across industries, from jewelry and coinage to industrial applications like electronics and solar energy. Understanding the trends in silver supply through mining and recycling over the years provides a window into the broader dynamics affecting both the silver market and the industrial landscape. In this analysis, we will examine the mining supply and recycling rates for silver from 2015 to 2024 and explore the key trends, patterns, and interesting data points.
Silver recycling refers to the process of recovering Silver from used materials so that it can be smelted and reused. Recycling is an important supply of Silver that is separate from mining supply
Lack in the growth of new Silver mining supply has meant that Silver recycling is becoming more important in balancing the physical Silver market, here are some key takeaways from our study:
Silver mining supply has consistently decreased from 896.8 million ounces in 2015 to a projected 823.5 million ounces in 2024, highlighting challenges in production and resource availability.
Recycling rates have steadily increased, from 147 million ounces in 2015 to 178.9 million ounces in 2024, showing a growing reliance on recycling to supplement the dwindling mining supply.
The largest drop in silver mining occurred in 2020, with production falling to 783.4 million ounces, likely due to disruptions caused by the COVID-19 pandemic.
From 2020 onward, silver recycling saw significant growth, jumping from 164.3 million ounces in 2020 to 178.9 million ounces in 2024, reflecting increased efforts to reclaim silver as mining slowed.
Despite the decline in mining, silver supply remains supported by recycling, which now plays a crucial role in maintaining market availability. This balance highlights the importance of sustainable practices in silver sourcing.
Absent significant Silver discoveries, Silver recycling rates are going to be more important in the future to keep the physical market in balance. Higher Silver prices will be needed to encourage growth in Silver recycling which is great news for Silver investors
Silver mining supply makes up the majority of physical Silver that is sold into the market. Changes to mining output can have an impact on price, however, given the lack of concentration of Silver mines it is relatively stable over time
From 2015 to 2024, silver mining supply data shows a general decline. In 2015, the global mining supply of silver stood at 896.8 million ounces. By 2024, the supply had decreased to an estimated 823.5 million ounces—a drop of approximately 8.2%. However, this decline has not been linear, with certain years reflecting notable fluctuations in the amount of silver mined.
2015-2017: The silver mining supply was relatively stable in 2015 and 2016, with figures at 896.8 million and 899.8 million ounces, respectively. However, a marked decrease occurred in 2017, with mining supply dropping to 863.8 million ounces, representing a 4% decline.
2017-2020: The years following 2017 saw a consistent downward trend, with mining supply falling further to 850.6 million ounces in 2018, 837.2 million ounces in 2019, and a significant drop to 783.4 million ounces in 2020. The sharp decrease in 2020 can be attributed to disruptions in mining operations caused by the COVID-19 pandemic, as well as declining ore grades in some major silver-producing regions.
2021-2024: Following the sharp decline in 2020, silver mining rebounded in 2021, with supply rising to 829 million ounces. However, this recovery did not fully compensate for the previous drop, and in the years that followed, the mining supply remained below pre-pandemic levels, hovering around 830 million ounces. By 2024, supply is projected to reach 823.5 million ounces, indicating a slight decline from 2023 levels (830.5 million ounces).
Overall, the mining data reflects a challenging environment for silver production, with factors such as mine depletion, regulatory changes, environmental concerns, and operational disruptions influencing the steady decline in output. At the same time, industrial demand for silver, particularly for renewable energy technologies, has increased, creating a situation where supply and demand dynamics are under pressure.
In contrast to the decline in mining supply, silver recycling has seen a steady upward trajectory over the same period. In 2015, recycled silver accounted for 147 million ounces of the total supply. By 2024, this figure is expected to reach 178.9 million ounces—a significant increase of 21.7%.
2015-2019: Between 2015 and 2019, the recycling rates of silver remained fairly consistent, fluctuating between 145.7 million and 148.7 million ounces. This stability suggests that recycling efforts during this period were relatively stable, with minimal growth in recycled silver contributions.
2020 Surge: In 2020, a notable jump occurred in recycling rates, with the volume of recycled silver rising to 164.3 million ounces—a 10.9% increase from the previous year. This surge can be attributed to several factors, including the economic uncertainty caused by the pandemic, which may have encouraged individuals and industries to liquidate silver assets. Additionally, the increased focus on sustainability and circular economy principles likely contributed to the growth in recycling activity.
2021-2024: Following the jump in 2020, recycling rates continued their upward trajectory, reaching 173.7 million ounces in 2021, 176.9 million ounces in 2022, and 178.6 million ounces in 2023. By 2024, recycled silver is expected to account for 178.9 million ounces, marking a steady and sustainable growth path for recycled silver. This trend reflects both the increasing emphasis on resource recovery and recycling in a resource-constrained world and the rising value of silver due to its industrial applications.
While mining remains the dominant source of silver, recycling has played an increasingly important role in maintaining the global silver supply. In 2015, recycled silver made up approximately 16.4% of the total supply, based on mining and recycling data. By 2024, recycled silver is projected to account for around 17.8% of the total supply. Though this change seems small in percentage terms, the growing significance of recycled silver highlights its critical role in meeting the rising demand for silver, especially as primary mining sources face depletion and operational challenges.
The convergence between declining mining output and rising recycling efforts suggests a shift in the way silver is sourced. As primary mines mature and new silver deposits become harder to exploit, the industry’s reliance on secondary sources like recycled silver is likely to grow.
A look into how future Silver mining supply could deviate from current levels and what the drivers for change could be
Several interesting patterns and factors emerge from the analysis of silver mining and recycling trends:
COVID-19’s Impact on Mining: The pandemic-induced disruption in 2020 played a pivotal role in the significant drop in mining supply that year. However, the quick rebound in 2021 indicates that silver mining operations were able to recover relatively quickly, despite the challenges.
The Growing Role of Recycling: Recycling has become a critical factor in offsetting the decline in mining production. As mining faces difficulties such as depleting ore grades and environmental regulations, recycling will continue to grow in importance as a sustainable and viable source of silver. Additionally, the increasing demand for silver in environmentally friendly technologies, such as solar panels, may drive further innovation in silver recovery processes.
Technological and Industrial Demand: The increasing demand for silver in high-tech applications—especially in solar energy and electronics—has created pressure on supply. This demand is a double-edged sword: on the one hand, it drives higher silver prices and recycling efforts; on the other hand, it exacerbates the strain on declining mining supplies.
Sustainability and Circular Economy: The growth in silver recycling aligns with broader global trends toward sustainability and the circular economy. As industries seek to reduce their environmental impact, the recovery and reuse of precious metals, including silver, will likely continue to rise, reducing the need for environmentally harmful mining practices.
Price Volatility and Investment: Silver is known for its price volatility, which can drive both mining and recycling efforts. During periods of high prices, recycling rates often increase as individuals and businesses take advantage of profitable liquidation opportunities. Similarly, high prices can spur investment in mining operations, though the environmental and regulatory challenges of new mining projects can slow production growth.
Looking ahead, the silver market will likely continue to face supply-side challenges, especially from mining. With environmental concerns and increasing production costs making it more difficult to exploit new silver deposits, recycling will play an increasingly prominent role in meeting global demand. The silver industry’s future will likely hinge on technological innovations that enhance the efficiency of both mining operations and recycling processes.
In summary, the silver mining supply has faced a steady decline since 2015, exacerbated by disruptions such as the COVID-19 pandemic and structural challenges in the mining sector. However, silver recycling has grown steadily, playing a crucial role in maintaining the global silver supply. As industrial demand for silver rises, particularly in green technologies, the reliance on recycled silver will only increase, positioning recycling as an essential component of the silver supply chain in the future.
Auronum is a leading supplier of Silver products from around the world. Our website is updated with new stock daily and all products are covered by our buyback guarantee. We are proud of our buyback rates which is why we display them on our website for all to see
