Silver investment demand is exploding in recent months, skyrocketing higher in wildly-unprecedented fashion! That has catapulted silver sharply higher since mid-March’s COVID-19-lockdown stock panic. Accelerating even in this usually-weak summer season, the massive capital inflows deluging into silver show no signs of abating. This is very bullish for silver, yet most traders remain unaware it is happening.
While silver prices are fairly-widely followed, the data revealing the underlying fundamentals driving this metal is sparse. The best silver global supply-and-demand data is only published once a year by the venerable Silver Institute in its outstanding World Silver Surveys. The latest covering 2019 was released in April, and is essential reading for all traders interested in silver. One key trend is very relevant to today.
Last year global silver demand edged up an ever-so-slight 0.4% to 991.8m ounces worldwide. Every demand category fell except for two, net physical investment and net investment in exchange-traded funds. The former rose a respectable 12.3% to 186.1m ounces. It makes sense investors’ interest in silver should grow with its price climbing 15.3% in 2019. That translated into far faster growth in silver ETFs.