Silver Stocks Stable as Industrial Demand Remains Strong
The Bedford Report released research on Silvercorp Metals (NYSE:SVM,TSE:SVM) and an outlook for the iShares Silver Trust (NYSE:SLV).
The Bedford Report released research on Silvercorp Metals (NYSE:SVM,TSE:SVM) and an outlook for the iShares Silver Trust (NYSE:SLV).
For the third day in a row silver took a plunge while margin rates increased, driving new investors away, though analysts are uncertain whether this is signaling a lasting drop in value or merely a minor correction in prices.
Silver ETFs have widened the playing field for many previously locked-out investors. On the flip side, this investment innovation may pose real danger: quick and dirty liquidation of silver holdings leading to a flood of physical silver onto an already oversupplied market experiencing declining levels of demand.
London-based research consultancy GFMS sees the price of silver hitting $30 an ounce on rising investment demand, which may reach a record high of over 210 million ounces, a net value of $4 billion, in 2010.
While investor demand for silver is credited for such a bullish outlook amongst analysts, a new report from VM Group/Fortis Bank Nederland shows industrial demand, especially from new uses and increased demand from China, will have a significant impact on silver prices going forward.
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