The Silver Institute and Metals Focus published a week ago new figures on supply and demand in the world silver market. As a result, Commerzbank strategists expect precious metals to enjoy a significant move higher.
Supply deficit in the silver market due to record demand
“Demand for silver will reach a record 1.21 billion ounces (37,600 tonnes) this year. This is a very strong 16% year-over-year increase.”
“For silver ETFs, which do not count towards physical demand, the Silver Institute and Focus Metals forecast outputs of 110 million ounces. On the other hand, the supply of Silver will grow only 2%, up to 1,017 million ounces (31,600 tons). ). Therefore, the silver market is expected to present a physical supply deficit of 194 million ounces (6,000 tons).”
“Silver price action does not adequately reflect these figures, as it has fallen just under 8% since the beginning of the year. Therefore, we anticipate significant upside potential for Silver.”
Source: Fx Street
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