Investing In Silver!
Demand and Supply:The supply of silver produced continues to dwindle, while demand for the metal is robust. This is the perfect recipe for higher prices.
In Canada, a major gold-producing country, in the first nine months of 2014, mines produced 373,828 kilograms of silver.
In the first nine months of 2013, Canadian miners produced 510,390 kilograms of silver representing a 26% decline in silver mine production. (Source: Natural Resources Canada web site, last accessed December 9, 2014.)
Mine production in other silver-producing countries is also on the decline. As silver prices remain low, silver producers have less incentive to produce. And those whose production costs were too high have shut down their operations.
Meanwhile, the demand side for silver remains strong. From January 1 of this year to December 9, the U.S. Mint has sold 42.86 million ounces of silver in American Eagle coins.
In the entire year of 2013, the Mint sold 42.67 million ounces in similar coins. (Source: United States Mint web site, last accessed December 9, 2014.) Because of the holidays, December is usually a robust month for silver coin sales; hence, the number of American Eagle coins sold this year will only increase.
Demand for silver from India is strong, too. Ashish Mundhra, managing director of Mundhra Bullion, a precious metal dealer in India, said, “There is a tsunami in silver. Investors are pouring in.” (Source: “Silver Demand Returning, in Patches,”The Wall Street Journal, November 11, 2014.)
http://www.silverseek.com/article/silver-prices-outperform-gold-2015-13918
