World Silver Survey 2012 confirms bullish picture

IMG Auteur
Published : April 27th, 2012
408 words - Reading time : 1 - 1 minutes
( 2 votes, 5/5 )
Print article
  Article Comments Comment this article Rating All Articles  
Our Newsletter...
Category : Gold and Silver





The Silver Institute's "World Silver Survey 2012" report hasn’t surprised investors and market participants. Silver mining output hit record highs last year, while silver demand from end users and investors remained robust – despite silver's correction phase which started close to a year ago. The Silver Institute is one of the most important organisations in the silver sector, comprising producers, dealers and numerous companies that use silver. Thus, this study is of significance.

Although global investment demand dropped slightly to 282.2 million ounces (8,766 tonnes) this marginal decline isn’t too consequential, since in 2011 silver registered a higher average price than in the previous year. As a consequence, the financial value of global silver demand reached a new record high of almost $10 billion – a 73% increase on the previous year. Demand for silver coins and medals climbed by 129% to a new record high of 118.2 million ounces (3,677 tonnes). In comparison with 2010 demand for silver bars increased 67% to 95.7 million ounces (2,975 tonnes).

Currently the silver price is moving in a fairly narrow trading range, oscillating around the $31.50 per ounce mark, which is an important resistance level. As the study shows, high investment demand last year was largely triggered by investors' increasing fears of a continuing devaluation of the US dollar and the euro. Many investors are keeping a close eye on the central banks and their moves – especially the US Federal Reserve (Fed) and the European Central Bank (ECB). Fears of continuous global debt monetisation are driving more and more investors to buy gold and silver.

Demand from industrial end users also recorded impressive gains last year. Although towards the end of 2011 demand from industrial clients – which include the jewellery, electronics and medical industries – dropped slightly owing to economic problems in the eurozone, the study by the Silver Institute forecasts a continuation of silver's upward trend for 2012. In the face of growing silver demand at the global markets and a rapid price appreciation it comes as no surprise that global mining companies significantly increased silver production for the reported period.

Exploration activities by junior mining companies and the recovery of mines which had been in disuse contributed to this increase in global silver supply – 2011 being the ninth year of mine supply increases. In comparison with the previous year mine production climbed 1.4% to a new record high of 761.6 million ounces, or 23,689 tonnes.



<< Previous article
Rate : Average note :5 (2 votes)
>> Next article
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
East Continues Stacking Gold While The West Stacks Paper Illusions
If the counties cartel owned private Central Bank acquires the Gold with cartels bank money for the country it supposedly represents who actually o...
Russia Did It!
23 Marprljr2
I have not trusted whatever the US government has reported,said,demanded since 911. The government ignored the laws of physics in explaining pretty...
Russia Did It!
23 Markevthorne3
One of the most sensible, level-headed articles I've read on this subject for a long time.
Drums Along the Potomac
23 MarGypsy
I see there's a HUGE market for Conspiracy Theories and FAKE NEWS in the U.K. ~ from the Top down. Theresa May runs her Conspiracy Theory up her f...
Stephen Hawking – Doomsday Prophet’s Top Five Predictions
19 MarThemis1
Stephen Hawking may have been brilliant in his own sphere of science. This does not necessarily equip him to make accurate pronouncements about ot...
Stephen Hawking – Doomsday Prophet’s Top Five Predictions
17 MarWatchdoctor3
In my opinion, yet another NASA actor promoting ''leaving the earth'' as a viable alternative to living in peace with our neighbours. Not even sure...
Drums Along the Potomac
18 MarThemis1
While I, too, don't give a hoot about the Skripals, the UK cannot tolerate foreign agents running amok and potentially endangering innocent British...
School Daze
15 MarJ.
@bfsiedel, While I agree with much of what you posted, regarding whether or not school is broken depends upon one's expectations of public school....
Most commented articlesFavoritesMore...
World PM Newsflow