In an interim report published last week as part of the Annual Silver Industry Dinner in New York, the Silver Institute said that global silver demand is expected to hit a new record of 1.21 billion ounces this year, rising 16% from 2021. “Each key segment of demand, except photography, is set to post a new peak,” said the analysts at Metals Focus, the author of the latest report. By Neils Christensen for Kitco News

Demand is likely to fall next year, said Philip Newman at consultants Metals Focus, which prepared the Silver Institute’s numbers. “India’s restocking is likely to trip over into 2023 but at some point will dissipate,” he said. “By extension, you could see some decent figures in 2023 but it may not match 2022.” Newman said he expected strong demand from industries such as solar panel and auto makers and more silver supply deficits in the coming years, but not as large as in 2022. By Peter Hobson for Reuters

According to the Silver Institute, global silver demand is forecast to reach a record total in 2022, driven by new highs for industrial demand, jewelry and silverware offtake and physical investment. These were some of the key findings reported by Philip Newman, Managing Director at Metals Focus, and Adam Webb, Director of Mine Supply, during the Silver Institute’s Interim Silver Market Review in New York today, which featured historical supply and demand statistics and estimates for 2022. By Vladimir Basov for Kitco News

In their 2023 price forecast, analysts at the British research firm Metals Focus said that they expect average gold prices to drop 10% next year, bottoming in the fourth quarter at a 4-year low of around $1,500 an ounce.The analysts have an even more dour outlook on silver, forecasting a 17% drop in the average price in 2023. The analysts said that they see silver prices bottoming in the fourth quarter at around $16.50 an ounce. By Neils Christensen for Kitco News

The industry’s average costs — which include project capital expenditure, taxes, interest and royalties — have risen 6 per cent year on year to $1,693 per troy ounce, highlighting the margin squeeze, according to consultancy Metals Focus. By Harry Dempsey and Leslie Hook for Financial Times

“For gold, $1,680-$1,700 is the range that should hold on the upside; only once that breaks can we see sustainable uptrends emerging,” said Harshal Barot, a senior research consultant for South Asia at Metals Focus. By Arundhati Sarkar and Deep Vakil, Reuters News

Metals Focus has highlighted that platinum demand is likely to stay robust until about 2025, then dwindle somewhat. This is because by 2025, the demand for electric vehicles would have increased quite a bit, thus reducing platinum’s demand from traditional auto makers, which use the metal in auto catalysts. By Indrabati Lahiri for Capital.com

In India, it is silver that is seeing big premiums. The differential has soared recently to $1, more than triple the usual level, according to consultancy Metals Focus Ltd. “Right now the demand for silver is huge as traders restock,” said Chirag Sheth, the firm’s principal consultant in Mumbai. “Premiums could remain elevated during the festival season that concludes with Diwali.” By Bloomberg

In their latest report, analysts at Metals Focus said that they expect silver prices to end the year lower as strong physical demand won’t be enough to counter weak investor interest due to rising bond yields and a U.S. dollar near 20-year highs. By Neils Christensen for Kitco News

In Q2’22 costs in the gold mining industry continued rising. The average all-in sustaining cost (AISC) reached a new record high of US$1,289/oz, up 3% q/q and 18% y/y. The average industry AISC has now sequentially increased almost every quarter since Q2’20, rising by 33% over this period. This ongoing rise in costs has been driven by inflation of input costs for miners, combined with high gold prices incentivising higher-cost, often lower-grade, production. By Adam Webb, Metals Focus for Gold Hub

In the second episode of Golden Compass, Philip Newman, the Managing Director at Metal Focus joins Money Control to talk about “valuation of gold”. “I think we have seen quite varying trends from that perspective. What we’ve seen more recently, of course, is with the rising inputs of energy costs, we have seen production costs rising more recently”, said Mr Newman. Higher gold prices allow companies to invest more “either in exploration or to perhaps mine areas that are less economic at lower gold prices. So they do tend to move in tandem to some extent.”

Lode is ramping up exploration in the highly prospective but as yet underexplored New England Fold Belt of NSW as silver demand for solar panels was last week forecast to grow by 15% this year according to independent research consultancy Metals Focus. … Metals Focus last week forecast photovoltaic (PV) systems would break installation records this year as the Russia-Ukraine war underscored the need for a fast track to clean energy sources. By Stockhead

In 2022, Metals Focus expects total PGM demand to grow 11%, breaching 12.8Moz. That’s a record high. “For this year, autocatalyst demand will make up 82% of total palladium demand, eclipsed by 90% for rhodium,” Metals Focus says. “Platinum, having a more diverse range of end-uses, will only see 41% of its demand used in autocatalysis, with jewellery, chemicals, then glass making up the bulk of the remainder.” By Reuben Adams for Stockhead

While much of the country continues to be affected by virus curbs and sporadic shutdowns, jewelry demand is improving, particularly ahead of the week-long national holiday at the start of next month, according to consultancy Metals Focus. That in turn could help bolster international prices, which are under the cosh due to rising interest rates around the world. “As the world’s biggest physical market, China’s local demand can lend some support,” analysts for the firm wrote in a note. “Retailers across China have started building stock for the upcoming National Day Holiday.” Ranjeetha Pakiam and Martin Ritchie, Bloomberg News

“We were very bullish on demand this year at the beginning but we have reduced our demand estimates,” said Chirag Sheth, principal consultant at London-based Metals Focus Ltd. The increase in import duties had a short-term impact and inflation and erratic monsoons in many parts of the country could impact rural demand, he said. BySwansy Afonso for Bloomberg News

According to Metals Focus, global renewable energy sector benefited from the ongoing energy crisis, which is especially important in the context of precious metals demand. The consultancy said that photovoltaic (PV) systems are set to break installation records in 2022 as the Russia-Ukraine conflict highlighted the need for a more rapid transition to clean energy. By Vladimir Basov for Kitco News