The demand for silver
The Silver Institute
states that demand for silver
6% photography; and
For the past three years, industrial demand for the metal has been flat, sitting at around 620 million ounces a year. The biggest changes in demand were from photography (down 5% in 2014) and solar panels (up 7%).
Demand for silver jewellery rose 1.5% last year, a new record. But the gold duties introduced by the Indian government most likely helped to fuel the figure.
India is continuing to import a lot of silver this year. At its current rate for 2015, it would consume nearly 33% of the total annual mining output. That would be 27% higher than last year.
The investment side of silver
Silver-backed exchange traded funds has remained stable, explains Peter Krauth in Money Morning US
. There has been some growth.
Silver is currently sitting 67% below its peak of 2011. This puts the gold/silver ratio to its current historic high of 74. This could suggest silver prices are due a correction higher.
Have a look at the chart below of the silver price…
Silver looks like it bottomed in November and rose strongly until the end of January. But then it hit the skids again into March. Now it appears to be moving in a defined upward trend as you can see from the 200-day moving average marked by the blue line.
Going into the remainder of the year, supply and demand, along with technical and seasonal influences, should offer some support to the silver price.
From here, it could end the year above its high this year of $18.50. If this happens a decent gain of around 15% could be possible.
Of course, only time will tell what happens to the price of silver, but perhaps the latter stages of 2015 could be the start of a bull market for silver.
So there you have it. Where the silver price may be going for the remainder of the year.
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