Friday, January 6, 2012

silver supply and demand 2012

silver supply and demand 2012 : As with gold, we expect heightened price volatility for silver in 2012 - but more so, with investors seeing silver as a leveraged play on gold. This in part reflects heightened political and economic uncertainty which plays havoc with the commodities markets. We expect to see silver holding robust interest amongst the speculator community and gaining in respect amongst the investor community with a tightening market justifying prices well above the $20 level.

However, slower global industrial output coupled with a firm US dollar in H1 2012 should provide a drag on runaway silver prices - although we see the possibility of a brief price spike based around difficult geopolitical concerns. Should economic conditions prove less difficult than feared in H2, then there are grounds for saying that silver could benefit as a recovery stock of sorts based upon its good industrial applications. So for silver its a case of heads or tails / we win really.

Silver demand in China and India is set to rise 40 persent in 2012
Demand for silver in China and India is up 30 persent in 2011. In 2010 India ?onsumed about 2,800 tonnes of silver, Indian and Chinese investors are buying more silver to hedge market losses.

CIBC Sees Strong Silver Demand into 2012
In its latest report on silver, CIBC reiterated its bullish forecast for gold’s sister precious metal,The Canadian-based investment bank is forecasting silver to average $28 and $30 per ounce in 2011 and 2012, respectively.

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