Breaking Down Silver’s Supply and Demand
January 31, 2011 by goldguru · Leave a Comment
At first glance, silver’s annual supply from mine production and from the secondary market paints a bearish picture; we need to put all these line items into perspective before making a qualified judgment.
While annual mine supply has been climbing, the rate of increase is expected to moderate in 2011 and beyond. The secondary markets for silver are also expected to moderate, stabilize and decline, while Indian scrap has already begun its descent over recent years. While I still see annual silver supply increasing for years to come (from world mining output as higher prices makes It more lucrative to take on new projects), industrial demand will do the same.
