Pan American Metals of Miami says Outlook for Silver is Positive but Depends on Level of Industrial Demand

Top Quote A strong demand form industry could push silver prices above $35 an ounce this year. End Quote
  • (1888PressRelease) January 19, 2012 - Silver prices are likely to rise due to activity from speculators although much depends on the level of industrial demand. Physical demand from India may also be affected by India's recent imposition of levies but, again, it remains to be seen just how much these will affect the market. Over 55% of silver's demand comes from the industrial sector so, if forecasts of $35 an ounce or higher are to be realized then much will depend on the health of the industrial sector.

    "While silver is most commonly associated with jewelry, coins, ornaments, and utensils, its unique chemical properties give it a wide range of utility," says Bill Hionas of Pan American Metals of Miami. "It is used in electric contacts and conductors, as a catalyst in chemical reactions, as a natural micro-biocide, and in high-end audio equipment."

    At the same time, silver bullion and coins have experienced significant investment demand recently with Silver Eagles and Maple Leafs fairly flying off the shelves in the US and Canada. Like gold, silver is perceived as providing a safe haven in times of economic crisis, as a feasible alternative to money. Currently trading at approximately 1/55 the price of gold, it offers investors a far more accessible entry point to the precious metals market.

    Opinion is divided as to the extent that the increased Indian levies will impact the silver market. Some analysts feel that the levies will hurt imports but others argue that they should have minimal impact. On balance, it seems that the levies were anticipated by the market and therefore should not be a major concern.

    About us:

    Pan American Metals of Miami, LLC is a group of traders, investors and account executives that combines many years of experience to help clients invest in bullion. PAMM provides an individual investment service and is based in Miami, Florida for convenient access to both North and South American investors.


    Press Contact

    Debbie Bailey
    Executive Administrator
    Pan American Metals of Miami, LLC
    Email: dbailey ( @ ) investpanam dot com

  • FB Icon Twitter Icon In-Icon
Contact Information