Part 1 - SILEVR Update Overview
Investment demand is main driver for silver price increases in 2010. INVESTOR demand reached 142 million ounces!!!! That's a lot of ounces relative to the past.
Investors keep silver to hedge against inflation and currency depreciation which actually causes inflation...same reason...currency devaluation worldwide due to fiat currency
Demand from industry increased significantly, driving Silver Producers to ramp up production. Reports cited a large gap between new supply from mines and demand in 2010, totaling 319 million ounces worldwide!!!!
Producers increased their output by 33% since 1999, but did not help to meet the growing demand in silver markets. 667 million ounces of silver produced in 2010, global demand reached 986 million ounces!!!! – 319 million ounces SHORT!!!!. Demands are a record high from Investors and continue to be a driver, which resulted in the $50/0z beginning May 2011.
Falling demand for silver in the photographic segments more than offset by new demand from new sectors and uses.
- Electronics
- Solar Panels ( China is leading )
- Components in medically orientated products
The forecast by CPM is for SILVER demand to grow globally by 36% in the next 5 years bringing demand to 666 million ounces. What do you think the price support will be?
Bottom line.....There is a huge upward potential.
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