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increase in global solar panel installations.
On the supply side, global silver mine production
in 2016 recorded its first decline since 2002. When
added to declining silver scrap supply, which posted
its lowest level since 1996, and a contraction in pro-
ducer hedging, total silver supply decreased by 32.6
million ounces in 2016. Total silver mined in 2016
dropped by 0.6% to 885.8 million ounces (or around
25,000 tonnes compared to annual gold production
around 3,000 tonnes), mostly attributable to the lower
output from the lead/zinc and gold sectors. Mexico
was again the world's largest silver producing coun-
try, followed by Peru, China, Chile and Russia.
Platinum and palladium are even rarer than gold
with only a few hundred tonnes of each mined annu-
ally. Although both metals are used in the electronic,
medical, and jewelry industries, their biggest demand
is for use in automotive industry as vehicle catalytic
convertors. According to Thomas Reuters GFMS
Platinum Group Survey for 2017, palladium demand
in auto catalyst applications reached 7.36 Moz (228.9
t) last year, the fifth successive all-time high and an
annual increase of 5%, the key factor behind this
strong growth being the robust pace of both global
gasoline production, sales driven by tax breaks in
China and an increased market share for gasoline
in Europe. By comparison, platinum consumption
in auto catalyst applications only rose by 2% to
3.3 Moz (102.2 t) last year, less than half the pace of
palladium.
This use in catalytic convertors alone accounts for
more than half of the annual production of palladium
metal although palladium is also used in electronic
