Beyond 2019: The Supply and Demand Forecast of Silver
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Second to gold and third to platinum in the hierarchy, silver ranks high on the priority list of investors looking for opportunities to secure their savings in.
Silver, as a metal of antiquity and worth, has remained precious for centuries. While it was used to create priceless silver jewelry in ancient Israel 3200 years ago, the name ‘silver’ became synonymous to ‘money’ in French. Equally versatile in industrial uses, silver ranks high on every scale used to measure the worth of this metal.
Owing to the variety of uses, besides being a store of value, the factors affecting silver prices are a complex web of demand and supply forces. Here’s more about the forecast of supply and demand of this white metal.
Supply and Demand Factors of Silver
Demand Sectors of Silver
Even though investors have cashed their silver assets for fiat currency systems, they still prefer keeping this precious metal in their investment portfolio to hedge against risk. Since savings and investments are vulnerable to economic, political and financial risks, it’s important to pick your assets wisely.
Therefore, the demand for silver has gone up. In fact, silver coins and bars account for one-fifth of the total supply of silver. After the financial crisis of 2008, economists are expecting a worse comeback anytime in the next few years. This is expected to drive the demand for silver even higher as a security before the storm.
Supply Sectors of Silver
1,740,000 metric tons of the white metal has been discovered to date, and global reserves of silver equal 530,000 MT. The Silver Institute has reported that Mexico, China and Peru are three of the top-most silver producing nations. Even though some mines specifically excavate silver, others produce silver as a byproduct of lead, zinc, and copper.
Supply and Demand beyond 2019
The investment landscape is already becoming conducive to silver assets. The volatility of the stock market has deterred loyal investors and stockholders and driven crowds toward precious metals.
Even though silver mines aren’t expected to produce as much in the coming years, recycle white metal is expected to boost supply. It’s predicted that primary operations in retrieving silver will take a backseat but recovery of the white metal from copper, lead and zinc will increase.
January 2019 saw a huge population of investors gravitating toward silver assets, such as the American Silver Eagle coins. In fact, the demand rose to such an extent that the US Mint had to suspend sales temporarily. The aggregate demand for non-bullion silver coins was expected to rise by 5% in 2019 and it’s clear it met that benchmark.
The present demand trends of silver investment show a promising future for this precious metal. This confirms that white metal investment is in the market to stay, and continue its historical legacy.