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If so, this will be the first time since 2015 that global demand will have hit 1 billion ounces.
Yet the long-promised silver price rally ran out of steam during the year, and the metal was down 13.24% year on year, while the gold-silver ratio was still high at 1:79.
The Washington-based institute also forecasts that 2021's final tally will show that physical metal investment rose by 32% to another six-year high of 64Moz.
Industrial demand over 2021 is expected to have achieved a new high of 524Moz, including a 13% rise to more than 110Moz in photovoltaic offtake alone.
This, says the institute, underlines silver's "key role" in the green economy.
In addition, brazing alloy and solder demand is thought to have expanded by 10% in 2021, helped by a recovery in housing and construction activity.
As to investment demand, the Silver Institute says the strength in that sector is being driven by buyers in the United States and India.
"Additionally, on top of solid gains last year, US coin and bar demand is expected to surpass 100Moz for the first time since 2015.
As for exchange-trade fund products, holdings there are expected to have risen by 150Moz in 2021 - a 564Moz increase over the past three years.
Up until November 10, ETF holdings of silver reached a global total of 1.15 billion ounces, close to the all-time high of 1.24 billion ounces reached last February 2.
Meanwhile, at the production end of the supply-demand equation, the Silver Institute estimates that mined output of the metal was up 6% in 2021, due mainly to that fact that, unlike in 2020 when COVID struck, most mines were able to operate at full production levels throughout the year.
