Silver Investing News suggests demand could soon exceed supply.
Silver market watchers believe the metal’s dual role as an investment and industrial asset will cause demand to exceed supply in the near future, according to a report by Charlotte McLeod for Silver Investing News.
Andrew Chaning, co-founder of silver exploration and mining company, PureFund, admitted to Silver Investing News: “We’re entering an era where we’re seeing a tug of war between investment demand and industrial demand. I think what people aren’t even considering as a possibility is a potential supply shortage in silver as a result of this squeeze from demand.”
Insiders suggest base metal mine closures (where silver is often produced as a by-product), increasing industrial applications and growing investment demand could force the market into a shortage situation.
Financial resource, Money Morning, points to the uneasy balance between physical and paper silver – suggesting that if all people who own silver futures wanted their metal delivered, there wouldn’t be enough physical silver to do so.
Other sources point to difficulties in recycling silver from many of the new products emerging on the market, meaning a growing percentage of what is being used can’t be recovered.
Finally, McLeod’s report argues a dearth of silver could be a strong catalyst for upward price moves, especially if companies start to stockpile resources.
To read the full report on Silver Investing news, click here.