“Silver supply is expected to fall this year, but it won’t fall as hard as demand, according to a new report by a leading precious metals consultancy,” reports BullionVault. “This will widen the metal’s “major surplus” say London-based analysts Metals Focus. Yet it expects silver prices will rise for a second year running thanks to strong buying by institutional investors.”
Looking ahead, the ongoing negative interest rate environment, with European and Japanese central banks cutting benchmark rates deeper into the red to promote growth, could push investors toward precious metals as a more stable store of wealth.
Moreover, unlike gold, silver sees much higher industrial demand. The precious metal enjoys heavy industrial demand that benefits from an expanding global economy.
“Furthermore, a possible correction in equities and “capped upside” for the US Dollar against other major currencies – thanks in part to an improved situation in the Eurozone – could also support silver prices, together with numerous global political risks,” according to BullionVault.
For more information on the silver market, visit our silver category.