Silver Institute 1H 2015 Report

Discussion in 'Bullion Investing' started by Ainslie Bullion, Jul 29, 2015.

  1. The Silver Institute has released interim supply/demand figures for the first half of 2015. We provide a summary as follows:

    Jewellery demand up 11% in US (largest user). Demand to grow 5% over all of 2015.

    Industrial use nearly 60% of total demand. 2% growth predicted over all of 2015.
    - Solar panels – 8% increase to 65m oz
    - Ethylene oxide – 61% increase to 8.6m oz
    - Electronics – 0.4% increase [qty not quoted but 264m oz 2014]

    Investment demand:
    - ETF – 4.7m increase
    - Bullion coin – 6% down at 43.6m oz – but still 5th highest ever
    - [ Note Bullion bars not quoted – 196m oz total in 2014]

    Supply / demand – silver market expected to be 57.7m oz in DEFICIT this year
    - Supply contracting
    - Demand growing
    - 3rd year in a row of a deficit

    Average gold : silver ratio for first half 73 compared to 58 average since 2000 [and as we often reference – c45 over the last century]
    - Puts silver undervalued compared to gold adding weight to continued investment demand.

    One could be excused for wondering how on earth the price could be this low then? If you are you might have missed reading our post on COMEX from earlier this week.
     
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  3. RedRaider

    RedRaider Well-Known Member

    Maybe gold is overvalued right now and silver is valued correctly. The US dollar is very strong right now. Either way, I think silver is a good buy at the current prices for a long-term hedge.
     
  4. serafino

    serafino Well-Known Member

    The problems are the large and growing premiums over spot that sellers are charging for silver.
     
  5. Silverhouse

    Silverhouse Well-Known Member

    Spot price for a roll of silver Washington's as of yesterday's ( 7-28-15 ) coinflation prices was 106.00. Apmex's price for one roll was 150.00 and some change. that's 44.00 over spot. Too high, way too high.
     
  6. desertgem

    desertgem Senior Errer Collecktor

    Lefort's process to produce ethylene oxide is a catalytic one, so the silver should not be consumed.
     
  7. GSDykes

    GSDykes Well-Known Member

    Good point, the only "losses" may be in some of the electronics, and possibly in the solar panel- though I think "recycling" is reclaiming most of the older panels. I think there are other "industrial" uses?? I think some would be in various batteries, and also as a catalyst in making formaldehyde (in which case the silver is also not used up) and as an assist in superconductor uses. I know every computer, smart-phone, automobile, aircraft use a lot of silver, much of which is not recycled. I would like to know how much total silver is mined and made available for most any use? I do know that the US mint's ASE program uses only about 4% of our silver production, so it has a small impact on the spot and changes. But if I am not mistaken isn't silver used in other chemical processes?
     
  8. GSDykes

    GSDykes Well-Known Member

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