Gold News

Investors "Flocking" to Silver Bullion

INVESTORS ARE "flocking" to Silver Bullion products from coins to exchange-traded trust funds, says non-profit market-development association The Silver Institute.

"Exchange-traded funds (ETFs) backed by physical silver [now have] holdings at their highest recorded levels, and US Silver Bullion coin demand is set to outpace last year’s record sales," says the Silver Institute in a market update.

Commenting on the data – and noting silver's recent jump to $25 per ounce – Michael DiRienzo, executive director of the Washington-based association, adds that "While this is primarily due to solid investment demand, there is evidence that industrial demand for silver is also on the rise.

"That too bodes very well for silver in the long-run."

The latest Precious Metals Outlook from HSBC Bank analyst James Steel agrees, stating that "despite a likely surplus" of Silver Bullion supplies over physical demand in 2010, "We expect prices to remain historically high based on investor demand and rebounding industrial demand."

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