The review cites improved physical demand for nearly all silver demand sectors this year. Here are the highlights:
- The Review forecasts fabrication demand across all sectors (except photography) will grow in 2013, notably in jewellery (+6%) and silverware (+6%) as a reaction to price declines and an improving global economy.
- Silver price decline driven by expectations that the Fed would taper its $85bn monthly bond and mortgage backed securities purchases in light of strengthening economic activity; similar to factors influencing the gold market.
- Unlike gold, silver ETF holdings have continued to grow this year, reaching a record-high of 655 Moz as of October 31 while investment in silver coins is forecast to increase by 19% year-on-year.
- Mine production poised to grow by 4% this year to 815 Moz, with production growth primarily coming from the US, Mexico and Dominican Republic.
- The fundamental balance, the difference between supply (mine production and scrap) and demand (fabrication excluding coins) is set to extend its residual surplus for the eighth successive year.
- Silver prices in the first ten months of the year have averaged $24.51, a 20.7% decline year-on-year. GFMS now forecast a full year average price of $24.24 in 2013.
Read the full report here.
