1 Billion Ounces of Investment Silver Demand in Next 10 Years
Last year, silver demand and investment broke a number of records thanks to the temporary correction in its price. It appears that this trend is not about it reverse. There has been a variety of news suggesting that both investment and industrial silver demand is going to remain strong for a while. Today we’ll take a brief look at investment demand.
In a recent press release, The Silver Institute projected that investment demand for silver is likely to increase by one billion ounces over the next ten years. Compare this to 860 million ounces of investment silver sold since 2006. Global demand for silver coins and bars increased more than 40% from 2012 to 2013. It sounds like this trend will be around for a while. Here’s an excerpt from The Silver Institute:
- Investment demand remains the single most important driver of prices in the silver market;
- The silver market is the second largest of the precious metals markets, behind only gold in terms of the value of metal flowing through the market on an annual basis;
- The dollar value of the silver market, which includes trading volumes on the major futures and options exchanges and clearing volumes of the London over the counter market, combined with newly refined silver supply, stood at US$5.1 billion in 2013;
- At the close of 2013, at least 2.3 billion ounces of silver were held in bars and coins around the world.”
The latest figures from the US Mint support the forecast of growing silver investment demand. Last year, the US Mint sold a total of 42,675,000 ounces of Silver Eagles – an all-time record. Thus far in 2014, the Mint is reporting 36,066,000 ounces sold. Given the low prices this season, especially when compared to the same months in 2013, there’s a strong possibility that 2014 will exceed 2013. At the very least, it will be on par with the record-breaking sales of last year. You can check the latest sales data yourself here.
As The Silver Institute points out, investment demand is one of the biggest factors in the price of silver. This means that as the investment demand grows, the price of silver is likely to rise with it. Not only that, but silver often tracks the price of gold. For investors, this means that silver is very likely to outperform gold when it comes to price appreciation.
Gold has been getting more attention in the past month, but the precious metals world is diverse. Physical silver is an important safe-haven investment that you should consider for your portfolio. Plus, it’s relatively cheap compared to gold, so even younger people with smaller incomes can afford to buy some. Check back on Monday and we’ll share some of the exciting silver industrial news.
Follow us on Twitter to stay up-to-date on Peter Schiff’s latest thoughts: @SchiffGold
Interested in learning about the best ways to buy gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!
Related Posts
Will the World’s Most Pro-Bitcoin Politician Embrace Gold?
Since Nayib Bukele became president of El Salvador, El Salvador has been in American media and global political discussion more than ever. While much of the attention focuses on Bukele’s mass incarceration of gang members and a decline in homicide of over 70%, Bukele has also drawn attention to his favoritism towards Bitcoin and how he […]
With gold hitting yet another awe-inspiring all-time high in the wake of Powell’s remarks reassuring markets (more or less) to expect rate cuts in 2024, a few analysts are pointing out risk factors for a correction — so is there really still room to run?Gold Hits New All-Time Record High
Gold hit a new all-time nominal high, surpassing the previous record set in December of the previous year. The precious metal’s price reached approximately $2,140, indicating a robust and continuing interest in gold as a safe-haven asset, despite a rather peculiar lack of fanfare from the media and retail investors. This latest peak in gold […]Is a Weak Yen Feeding the Global Gold Bull?
The gold price has been surging, with unprecedented central bank demand gobbling up supply. It has been a force to behold — especially as US monetary policy has been relatively tight since 2022, and 10-year Treasury yields have rocketed up, which generally puts firm downward pressure on gold against USD. World Gold Council: “Blistering Central Bank Buying” Fuels Strong Gold Demand
Total gold demand hit an all-time high in 2023, according to a recent report released by the World Gold Council. Last week, the World Gold Council (WGC) released its Gold Demand Trends report, which tracks developments in the demand for and use of gold around the world. Excluding over-the-counter (OTC) trade, 2023 gold demand fell slightly from 2022 […]
[…] Friday, we gave you an update on silver investment demand. While it’s a leading factor in the silver price, investment demand is […]