• The Mining - Silver industry is subject to fluctuations in silver prices which have been affected by a plethora of factors lately, including a stronger U.S. dollar, interest rate hikes and U.S-China trade war apprehensions. These factors have led to a decline of 4.6% in silver prices over the past year. On top of this, the industry has to contend with escalating production costs including the cost of electricity, wages, water and materials. With no control over silver prices, the industry has to focus on improving sales volumes while being cost-effective at the same time. The companies are investing more than ever in R&D and resorting to technological innovations targeted at nearly every level of operation to increase efficiency of operations, create safer working environments, keep costs low and sustain growth.
   
• Given its unrivaled characteristics, silver serves many industrial products. In fact, industrial applications account for roughly 60% of the global silver consumption. Growing industrial activity will continue to sustain silver demand. China will continue to be a major driver in the global silver market for years to come, fueled by continued industrial demand and silver mining activity. The demand for silver continues to increase, especially with expanding uses in technology as the world develops more electric cars and robotics. The ongoing revolution in green technologies, aided by the exponential growth of new energy vehicles and investment in solar photovoltaic energy, will be a major catalyst. To curb pollution, governments globally are providing financial incentives and imposing regulations that favor the development of electric and hybrid vehicles.
   
• Demand in jewelry fabrication, which accounts for approximately one-fifth of total silver demand, is also expected to increase. For many fashion-conscious consumers, silver is more desirable than gold because of its color neutrality, which provides more versatility. India will emerge as a major consumer courtesy of increased investor interest and growth in jewelry, decorative items and silverware fabrication. Moreover, silver serves as a safe haven asset in times of uncertainty. However, the prospects of a dwindling supply loom large on the industry. This is due to the absence of a development of new projects, declining ore grades and depleting reserves. Consequently, a potential silver deficit is imminent, which in turn sets the stage for higher silver prices in the long haul.
   

Zacks Industry Rank Indicates Dismal Prospects