Growing Silver Demand
News
|
Posted 07/05/2015
|
4568
A key differentiator for silver it’s dual price drivers. We are all familiar with its monetary or investment use in the same vein as gold but around a third of mine supply is used in industry, and growing industries at that like solar power, batteries, electronics and medical.
The table below shows that in its key industrial sectors silver demand is forecast to increase by 76 million ounces (2,100 t) per year. Combine this with our earlier news posts on the declining or stagnant supply of silver and it makes for a compelling investment case. If supply growth was stagnant until 2018 we would see that third jump to 40% for industrial use leaving just 60% for jewellery and investment. The investment equation gets even more compelling when combined with the sleeping giant of JP Morgan’s market corner, what looks to be another near record year for US Silver Eagles, and the growing threat of a financial markets crash and the ensuing rush to save haven precious metals.