Total silver industrial demand is expected to grow by 27% to 680 million ounces by the year 2018, according to the latest report published by the Silver Institute. The mining industry will need to supply a further 124 million ounces into the market to maintain the supply demand equilibrium.

Silvers unique properties make it indispensable in a number of industrial applications from solar panels to watch batteries. Half of the additional demand will occur from the electrical sector with the remainder coming from our increased reliance in batteries.

The report forecasts in the future that silver will also play an important role in printed inks, anti-bacterial products and brazing and alloys.

The solar panel industry has been a strong market for silver. Since 2013, demand from developing nations has increased significantly as solar technology becomes ever and more affordable.

Despite the fundamentals silver is currently trading at just under £11 per ounce after reaching a high of £29 per ounce in September 2011.