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Bolstering the case for silver and SLV are expectations that demand for the metal will outpace supply this year.
“With miners avoiding new projects amid global economic uncertainty, the price could spike as high as $17.50 an ounce from about $15.87 now, according to a Bloomberg survey of 11 traders and analysts. About 26,000 tons of silver is expected to be produced this year, according to estimates by Robin Bhar, a London-based analyst at Societe Generale SA. That would be the least since 2013, and means global physical demand will again top output,” according to Bloomberg.
Investors have pulled $131.51 million from SLV this year.
For more information on the silver market, visit our silver category.