Comex silver futures are currently hovering around $18.0 per ounce.
The Global Manufacturing PMI stood at 52.7, compared to the long-term average of 51.4, and was sitting at a 34-month high, indicating that manufacturing activity will continue to rise.
Moreover, falling supplies will also help support silver prices. Shah pointed out that mining capital expenditure has been sliding, which has cut into supply. Silver has been in a supply deficit for the past 11 years and the ongoing decline in mining investments will contribute to further deficits.
Investors who are bullish on the silver outlook can take a look at physical silver bullion-backed ETFs like the ETFS Physical Silver Shares (NYSEArca: SIVR). The silver ETF holds silver bars stored in London, United Kingdom vaults. SIVR is up 13.3% year-to-date.
For more information on the silver market, visit our silver category.