Investors May Accumulate 1 Billion Ounces of Silver in Next Decade

The Silver Institute released a free report titled Silver Investment Demand. It posits that investors will accumulate as many as 1 billion ounces of silver over the next decade largely due to “an ongoing weak global economy.”

Other key points include:

• Investment demand remains the single most important driver of prices in the silver market;
• The silver market is the second largest of the precious metals markets, behind only gold in terms of the value of metal flowing through the market on an annual basis;
• The dollar value of the silver market, which includes trading volumes on the major futures and options exchanges and clearing volumes of the London over the counter market, combined with newly refined silver supply, stood at US$5.1 billion in 2013;
• At the close of 2013, at least 2.3 billion ounces of silver were held in bars and coins around the world;
• With silver producer mining costs declining, there are strong reasons to expect mining company equities to rise in the near term.  In the long term, investors are likely to benefit from buying silver mining equities; and
• The silver market, when compared to the gold market, is a much more volatile market and investors are able to receive a much bigger response in the price of silver than that of gold.

Click here to read the full report from the Silver Institute.
Click here to read the press release on the report.