mamboni
12th April 2011, 02:02 PM
Silver Investor, Industrial Demand Jumped In 2010
by BMG Article Editorial on April 8, 2011
Silver demand climbed 15 percent to the highest level in at least 20 years in 2010 as investment jumped to a record and industrial usage rebounded from a five- year low, researcher GFMS Ltd. said.
Total demand climbed to 1,06 billion ounces as world investment surged 40 percent to 279.3 million ounces, GFMS said in a report published by the Washington-based Silver Institute. Industrial consumption gained 21 percent to 487.4 million ounces and is “seeing pronounced advances” this year, GFMS said. Prices may climb to $50 an ounce by the end of the year, GFMS analyst Philip Newman said by e-mail today, indicating a 27 percent increase.
Silver climbed to a 31-year high of $39.7625 an ounce in London yesterday. Prices more than doubled the past year as concerns about rising inflation, debasement of currencies and European debt boosted demand for precious metals, while the metal also benefited from its use in industry. Silver is used in solar panels, plasma screens and chemical catalysts.
“Monetary policy is unlikely to be tightened that much in 2011 and inflation and sovereign debt concerns will most probably grow further,” London-based GFMS said in the report. “This will encourage investment demand for silver. Additional support should also flow through from solid gains in industrial demand.”
GFMS’s forecast for $50 is based in part on the “strong probability” that gold will climb above $1,600 an ounce, according to a GFMS presentation in New York. Gold last traded at $1,463.30 in London.
Silver has outperformed gold’s 27 percent gain the past year, and beat platinum’s 4.5 percent increase and palladium’s 53 percent surge. Silver’s surplus, defined by the difference between supply and fabrication demand, narrowed 12 percent last year to 173.4 million ounces, GFMS said.
http://blog.bmgbullion.com/preciousmetals/silver/silver-investor-industrial-demand-jumped-in-2010/
by BMG Article Editorial on April 8, 2011
Silver demand climbed 15 percent to the highest level in at least 20 years in 2010 as investment jumped to a record and industrial usage rebounded from a five- year low, researcher GFMS Ltd. said.
Total demand climbed to 1,06 billion ounces as world investment surged 40 percent to 279.3 million ounces, GFMS said in a report published by the Washington-based Silver Institute. Industrial consumption gained 21 percent to 487.4 million ounces and is “seeing pronounced advances” this year, GFMS said. Prices may climb to $50 an ounce by the end of the year, GFMS analyst Philip Newman said by e-mail today, indicating a 27 percent increase.
Silver climbed to a 31-year high of $39.7625 an ounce in London yesterday. Prices more than doubled the past year as concerns about rising inflation, debasement of currencies and European debt boosted demand for precious metals, while the metal also benefited from its use in industry. Silver is used in solar panels, plasma screens and chemical catalysts.
“Monetary policy is unlikely to be tightened that much in 2011 and inflation and sovereign debt concerns will most probably grow further,” London-based GFMS said in the report. “This will encourage investment demand for silver. Additional support should also flow through from solid gains in industrial demand.”
GFMS’s forecast for $50 is based in part on the “strong probability” that gold will climb above $1,600 an ounce, according to a GFMS presentation in New York. Gold last traded at $1,463.30 in London.
Silver has outperformed gold’s 27 percent gain the past year, and beat platinum’s 4.5 percent increase and palladium’s 53 percent surge. Silver’s surplus, defined by the difference between supply and fabrication demand, narrowed 12 percent last year to 173.4 million ounces, GFMS said.
http://blog.bmgbullion.com/preciousmetals/silver/silver-investor-industrial-demand-jumped-in-2010/