Even with major equity indices in the United States near all-time highs, and expectations for higher interest rates during 2015, exchange traded fund (ETF) holdings of silverhave remained remarkably robust, according to Andrew Leyland, Manager, Precious Metals Demand at Thomson Reuters.
He presented his comments and report on provisional supply and demand forecasts for 2014 at the Annual Silver Industry Dinner in November in New York City, hosted by the Silver Institute.
ETF holdings stood at 650 million ounces by end-November, a year-to-date increase of 3.2 percent. This is in sharp comparison to gold ETF holdings, which have dropped 7.7 percent during the same period.
–Open interest in silver on the COMEX exchange has seen record levels, remaining a popular instrument for institutional investors.
–Demand for silver bars and coins has soared in recent weeks as bargain-hunting retail investors returned to the silver market after a disappointing first half of the year. In India, imports of silver are up by 14 percent year-on-year for the January to October period and set for an annual record.
–On the supply side, mine production is forecast to reach highs in the silver industry in 2014 as supply from Guatemala, Mexico, Chile and Peru increases. Primary supply is expected to increase by 3.5 percent in 2014 to 868 million ounces.
–Total physical demand for silver is forecast to be 6.7 percent lower in 2014 after a weak first half for many sectors. In Europe, a harmonization of sales tax rates in January saw silver become significantly more expensive for retail investors and led to lower sales until the recent price declines.
Zhejiang Yaang Pipe Industry Co., Limited