Silver prices strong in 2009

by eyetee | June 7, 2010 12:00 am

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Strong investor demand for silver last year helped the white metal post its second highest price average since 1980.

According to the World Silver Survey 2010, a recovery in industrial demand in 2009 also contributed to the increase, although the global recession took a bite out of fabrication demand in the early part of 2009.

The second half of the year, however, saw a rebound, which has continued into 2010.

While supply is forecast to remain flat, fabrication demands are expected to help boost prices. In 2009, silver reached an average price of $14.67, with an intra-year increase of 53 per cent.

On the jewellery side of things, demand fell slightly by 1.1 per cent last year from 158.3 Moz to 156.6 million ounces (Moz). However, the decline was offset by increases in jewellery demand in India and China.

Demand for silver exchange traded funds (ETFs), as well as physical retail investment, accounted for most of the investment strength last year. ETF holdings increase by 132.5 Moz, reaching 397.8 Moz.

Source URL: https://www.jewellerybusiness.com/news/silver-prices-strong-in-2009/