Silver Investing to Push Prices “Above $30": GFMS
ROBUST Silver Investing demand is very likely to "absorb" a growing surplus of physical metal in 2011, says a leading market analyst, helping to push prices above $30 per ounce.
Speakingto the Silver Institute's annual dinner last night in New York – attended by over 130 specialists from the mining, refining, industrial, jewelry and Silver Investment sectors – Philip Klapwijk of GFMS Ltd. said that overall fabrication demand will show perhaps 10% growth this year, almost recovering the level of 2008.
Inparticular, industrial demand will swell by 18% from 2009, led by a "surging contribution" from photovoltaic solar panels andethylene-oxide catalyst explosives.
Butsilver mining and particularly scrap supplies will also rise, said Klapwijk, outpacing industrial demand – which now accounts for some 49% of total demand – and thus extending the market's existing surplus.
"While this might appears bearish," the GFMS chairman told the Silver Institute, "we remain confident that [ Silver Investing ] will be of a mood to absorb the resultant, growing surplus, as key supports such asultra-low interest rates, a weakening Dollar and a buoyant goldmarket should remain with us."
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