A look at the most recent PM stocks at the LBMA shows a continuing decline in both Gold and Silver, but the decline of stock levels of Silver is sees silver is at a 7 year low.From Schiff gold
They expect this year to increase further by 16%.
The Indian governments crackdown on gold has shifted the merchants to a greater volume of SIlver, and with mine production only projected to increase by 1%, the global silver market is forecast to record a second consecutive annual deficit in 2022. At 194 million ounces, this will be a multi-decade high and four times the level seen in 2021.
Mick
The larger the size of the ingots or bars, the lower the premium.Could I just ask a question please.
When buying physical Silver it appears you pay a premium of around 10 % but with gold the premium is much less.
Am I seeing this correctly or is there something I am not seeing.
Thanks for your time
bux
I'm outta all that now.
Yes imo for brands it makes them more recognisable but for antique or novelty bars I wouldn't bother myself. The main game is ozs of silver.is paying a premium for bars with particular marks (brands) on them makes any difference when you come to sell them ?
I'm still into that but they can be ruinous if you are unlucky and make the wrong picks, e.g I went hard into Dacian (DCN). The explorers are even more risky. Big rewards if lucky. It's luck of the draw almost. I take advice from a couple of pros these days. Greg Canavan at Fat Tails Investment Advisory and Between the Lines Finance on Patreon. Of the producers I'm in NST, RMS, RRL, WAF, SSR but have largely given up trying to analyse their prospects - boom or bust could happen. The companies building gold plants or providing services are probably a safer bet. I have a few shares in GR Engineering (GNG) but I got them a long time ago and cheaper than now - they've paid great steady ff dividends and seem to go from strength to strength). Another company in that sector is LYL.companies with exposure to precious metals
@bux2000 I will be trying to answer your queries later. I'm in a bit of a quandary as to what to say about silver these days. I still have 'collectable' silver perth mint kookaburras sitting in my dealer's vault in Melbourne (Goldstackers). Cost a premium. I have to pay storage every month and they've been there for more than a decade. If I sold them back to the dealer he would pay less than spot. So am I a fan of physical, nope. More later ?
Tattoo the combo on your butt cheeks.Thanks @finicky ,
It is very handy to draw on the experience of others and I do appreciate your honesty.
Thanks for your replies, maybe need to rethink the depth of my holes and buy a GPS.
Might keep the coordinates in the safe...............now where to put the combination.
All the best
bux
So , if thats not a typo, a demand of 1.24 Billion ounces versus mine output of 822 million ounces, leaves 400 million ounces to be accounted for , either by recycling or being taken out of long term storage.Silver demand set a record in every category last year based on final data released by the Silver Institute this week.
Total global silver demand in 2022 came in at a record $1.242 billion ounces. This represented an 18% increase in silver demand over 2021.
Net physical silver investment rose for a fifth consecutive year to a new high of 332.9 million ounces. Silver investment in India charted a staggering 188% increase over 2021 with lower prices and bargain hunting driving demand higher. There was modest demand growth in the US despite ongoing supply shortages that drove premiums exceptionally high – especially on American Silver Eagle coins.
Industrial demand posted a record of 556.5 million ounces in 2022. Green energy initiatives helped drive industrial offtake higher. Photovoltaics (PV) alone consumed 140.3 million ounces of silver.
Demand for silver in the solar energy sector is expected to continue to grow. According to a study by scientists at the University of New South Wales, solar manufacturers will likely require over 20% of the current annual silver supply by 2027. And by 2050, solar panel production will use approximately 85–98% of the current global silver reserves.
Electrification within the automotive segment, along with other power generation and distribution investments also supported industrial demand.
Silver jewelry fabrication increased by 29% year-on-year to a record 234.1 million ounces. India led the way, with demand doubling year on year.
Meanwhile, silverware demand in 2022 charted an even bigger spike of 80% to 73.5 million ounces, another record high.
While demand for silver soared, supply was flat last year.
Mine output dropped by 0.6% to 822.4 million ounces. Production from primary silver mines was almost flat year-on-year, rising by just 0.1% to 228.2 million ounces. Lower by-product output from lead and zinc mines, particularly in China and Peru, drove overall mine output down.
A modest increase in recycling offset the decrease in mine output.
Record global silver demand and a lack of supply upside contributed to last year’s 237.7 million ounce market deficit. It was the second consecutive annual deficit in a row. The Silver Institute called it “possibly the most significant deficit on record.” It also noted that “the combined shortfalls of the previous two years comfortably offset the cumulative surpluses of the last 11 years.”
Looking ahead to 2023, the Silver Institute projected “this year is expected to be another of solid silver demand. Industrial fabrication should reach an all-time high, boosted by continued gains in the PV market and healthy offtake from other industrial segments.”
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