Silver bought for investment purposes is expected to rise by 1 billion ounces over the next decade as investors turn to silver to preserve wealth, according to the latest report published by the Silver Institute.

The non-profit organisation confirmed investment demand is the main driver behind the silver price. The silver market is the second largest precious market in terms of value. The report forecasts that investment demand will rise by a further 1 billion ounces, on top of the 860,000 ounces purchased since 2006.

The Silver Institute believes that over 2.3 billion ounces of silver are held in the form of investment grade bars and coins worldwide. Despite price volatility more and more investors want exposure to the metal which is demonstrated in the growth in silver exchange traded funded funds.

Currently silver is trading at £10.67 per ounce.