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Silver Institute Sees Growth in Silver Investment Demand for 2012

Silver will outperform gold, platinum and palladium by a wide margin in 2012 according to the Silver Institute. The Silver Institute hinged their predictions on a research note which shows that sturdy investment demand accounted for the upward rise of 20% in the prices of silver in the first ten weeks of 2012.

In a press release issued Thursday, the Silver Institute noted that investors are strengthening their hold in the different forms of silver investments available on the market. The institute said that silver-based exchange traded funds (ETFs) now accounts for 586 million ounces of silver compared to 576million ounces recorded at the end of 2011. Investor demand for physical silver bars is also strengthening. In fact, reports from several precious metal dealers shows that ‘’sales of sliver bar continue to be brisk’’ according to the news release.

In addition, investor demand for silver on the Commodity Mercantile Exchange (COMEX) has been strong since the beginning of this year. Also, the news release says as of Feb 28, net long silver positions, which represent the difference between total long positions and total short positions, had increased by two-fold from end 2011. The simple inference is that investors are bullish on prices. The Silver Institute added that the total net long positions on February 28 were at their highest positions since September 13, 2011.

The press release says ‘’Also contributing to a strong silver price over the course of this year will be strengthening global silver industrial demand after a record 2011.’’A silver demand report commissioned and published a year ago by the institute predicted silver industrial demand will grow by 36 percent to 666 million ounces from 2010 to 2015 according to the press release.

Silver industrial demand remains strong mainly because there is no substitution plus there are new industrial uses which are vital according to the Silver Institute.

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Silver Institute Sees Growth in Silver Investment Demand for 2012

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