Global silver investment remains concentrated in just four countries – the US, India, Germany and Australia – which together account for about 80% of bar and coin demand, according to a new report published by the Silver Institute.

The study, prepared by London-based consultancy Metals Focus, underscores the volatility of silver investment. Over the past 15 years, demand has swung from a low of 157.2-million ounces in 2017 to a record 337.6-million ounces in 2022. Physical investment accounted for 16% of global demand in both 2017 and 2024, down from a peak of 28% in 2015.

"With growing geopolitical tensions, rising government debt, and an increasing investor perception that silver is undervalued compared to gold, the silver price has experienced a 34% year-to-date increase. By comparison, the white metal is outperforming gold, which is up 28%, and Bitcoin, rising 18% year-to-date," the Institute stated on August 26.

The report was published only days before silver spot prices climbed above $40/oz on September 1, the first time since 2011, extending the year-to-date rally.

UNITED STATES
According to the report, the US remains the biggest silver investment market, with retail investors acquiring 1.5-billion ounces between 2010 and 2024. Much of this silver remains in investor hands, though selling has picked up since late 2023. Demand for newly minted bars and coins is expected to hit a seven-year low in 2025, the report said. Precious metal-backed Individual Retirement Accounts have been a notable growth driver and still represent a small portion of the broader IRA market, suggesting scope for further expansion.

INDIA
India, often the world’s second-largest market, has at times overtaken the US in silver purchases. Between 2010 and 2024, Indian investors accumulated 840-million ounces, mainly in bars. Even with rupee prices at record highs, selling has remained limited, reflecting deep-rooted bullish sentiment. A 2024 duty cut spurred buying, while exchange-traded products launched in 2022 have broadened the investor base.

GERMANY
Germany ranked third, with demand surging during the pandemic and Russia’s invasion of Ukraine before collapsing after favourable tax treatment on non-EU bullion coins ended in 2022. Net silver demand slumped by 80% over two years. Still, 2025 is forecast to bring a 25% rebound as liquidations ease.

AUSTRALIA
Australia has emerged as the fourth-largest silver investment market. Demand surged from 3.5-million ounces in 2019 to 20.7-million ounces in 2022, aided by favourable tax treatment and the growing use of silver in retirement accounts. A modest 11% increase is expected this year as inflation eases and investors rotate back into the metal, which some see as undervalued relative to gold.

The Silver Institute noted that silver’s role as both a monetary and industrial metal, alongside shifting investment patterns, has reinforced its importance to global markets.