Growing Market Deficit and Other Silver News

The Silver Institute has released its latest issue of Silver News. This edition spotlights a growing silver market deficit that is expected to widen further in 2016 due to increased demand and shrinking supply.

The silver market deficit (total supply less total demand) is expected to widen in 2016, drawing down on above-ground stocks. The larger deficit is expected to be driven by a contraction in supply.”

In what would represent the first reduction in global silver mine production since 2002, mining output is projected to fall by as much as 5% year-on-year in 2016. Scrap supply is also expected to weaken further in 2016. It has been on the decline for the last several years.

Demand is expected to rise across most categories in 2016, including industrial demand, use in photovoltaics for solar energy, demand from ethylene oxide producers, jewelry fabrication, and coin demand. Analysts also expect surging demand for silver in India to continue. The country imported a record high 228 million ounces of silver bullion in 2015.

The February issue of Silver News also features some interesting technological developments involving silver and some important information for investors, including:

• Researchers have used silver to create panels for a color-changing “chameleon robot.” The rapid color-changing display lets researchers mimic a chameleon, and could one day be used for adaptive camouflage.
• A newly developed silver paste allows for more precise laser etching. With the help of silver, lasers are being used to produce a wider range of markings, some extremely intricate, that would not be possible with lasers alone.
• Smaller electronic devices are now possible by employing tiny internal silver switches.
• Silver ions are being used to protect PVC wall cladding from bacteria.
• Kwikset has teamed up with antimicrobial product protection company Microban to produce a silver-based antibacterial residential lock.

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