Silver Proving its Mettle in 2012
(Washington, D.C. – March 8, 2012) – Sturdy investment demand has pushed the silver price up 20 percent in the first ten weeks of 2012, outperforming platinum, palladium and gold during the period.
Investors are increasingly acquiring silver in many forms. Globally, silver-based exchange-traded-funds (ETFs) account for 586 million ounces (Moz) of silver, up from 576 Moz at the end of 2011. Demand for physical silver bars is also strong. According to several precious metals dealers silver bar sales continue to be brisk.
Moreover, investor demand on the Commodity Mercantile Exchange (a division of the CME Group) has been strong this year. As of February 28, net long silver positions, which are the difference between total long positions and total short positions, had increased by more than two-fold from end-2011. If investors are net long they are bullish on prices and expect further price strength. Total net long positions on February 28 were at their highest level since September 13, 2011.
Also contributing to a strong silver price over the course of this year will be strengthening global silver industrial demand after a record 2011. According to “The Future of Silver Industrial Demand,” a report commissioned by the Silver Institute and released last March, silver industrial demand is forecast to grow by 36 percent to 666 Moz from 2010 through 2015. Silver industrial demand remains positive primarily because of the lack of substitution and the wide range of established and ever-growing new uses of silver that are vital to industry.
The Silver Institute is a nonprofit international industry association headquartered in Washington, D.C. Established in 1971, the Institute serves as the industry’s voice in increasing public understanding of the value and many uses of silver.
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