Silver price set to rise

'Flat supply' and 'solid gains in fabrication demand' should buoy silver prices this year, according to the latest World Silver Survey.
Posted in News

 
“Flat supply” and “solid gains in fabrication demand” should buoy silver prices this year, according to the World Silver Survey 2010 from The Silver Institute.
 
Releasing the survey, the reports’ authors said strong investor demand and a recovery in industrial demand during 2009 were the key factors that led to the strong performance of silver prices last year.
 
“The white metal’s price has continued to make gains as Europe now battles a sovereign debt crisis that threatens to undermine a still fragile global economy,” they said.
 
“While the global recession caused fabrication demand to fall sharply in the early months of 2009, a rebound began in the latter half of the year, which has continued into 2010.
 
“Silver posted an average price of $14.67 in 2009, the second highest average since the high reached in 1980. Strong gains in investment and a recovery in demand later in the year, were the prime reasons for the 53 percent intra-year rise.
 
“Much of 2009’s strength in investment can be attributed to soaring demand for silver exchange traded funds (ETF) as well as physical retail investment. This occurred on the heels of 2008’s previous record ETF inflow of 265.3 million ounces (Moz) of silver. Total ETF holdings rose by 132.5 Moz over the course of 2009, ending the year at an impressive 397.8 Moz as new funds entered the marketplace from Australia and the United States.”
 
For more information visit www.silverinstitute.org

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