On average, Canada produces over 1000 tonnes of silver annually. While the provinces of New Brunswick, Quebec, and Ontario are responsible for the majority of that production, British Columbia, and the territories of Nunavut and the Yukon are quickly becoming hot beds for silver exploration and development projects.
Silver is feeling the pressure from both the precious metals sector, with gold dropping to its lowest close in three months, and the industrial sector as investors worry that the economic recovery is stalling.
Long-time silver investors are well aware that this isn’t the best time of year for precious metals as gold and silver prices trade sideways to lower, hitting bottoms by mid-August. Despite the depressing name, the summer doldrums do offer a ray of sunshine.
For centuries, humans have used silver as an antibacterial agent for medicinal and food storage purposes. Now those historical uses can be expanded upon as scientists discover the numerous benefits of ionized silver nanoparticles.
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.
While the contagion of fear in the markets is providing silver with a much needed boost this week, ongoing economic problems around the world will eventually weigh on industrial demand.
The news story getting the most attention (and causing the most hand-wringing) this week is evidence China’s economy is cooling after the nation posted a growth rate of 11.9 percent in the first quarter of 2010.
While the price of silver followed gold up and up this month, teasing analysts and investors with hopes of breaking past $20 an ounce, the sometimes precious sometimes industrial metal fell hard the past two days.
The news wires are all a buzz with the most recent scoop of Wall Street: JPMorgan’s investigation by the Department of Justice and the Commodity Futures Trading Commission over allegations of manipulating the silver market on the London Bullion Exchange and NYMEX.
Silver has taken off since last Thursday as growing concerns over Euro Zone debt pushed risk adverse investors away from paper currencies and into the precious metals.
Wednesday, August 25, 2010