This year Silver has gained by 12.23% and ranks 11th commodity in the list of top gainers. The metal demand is likely to sustain as it is used for different purposes.
The metal is used in mobile phones, automobiles, batteries and also in Solar panels. A mobile phone contains as much as 0.25 gram and a car contains as much as 30 grams of Silver. According to Silver Institute 50% of demand comes from the industries compared with 10% of Gold. Silver coins are among major products highly demanded by investors.
Silver Bullion Coins selling rose to record high in last year. In a press release Silver Institute reported that U.S. Mint sold 42,675,000 American Eagle Silver Bullion coins in 2013; 26 percent more than the 33,700,000 coins sold in 2012. In this year 6,500,000 American Eagle Silver Bullion coins have already been sold.
Bullion dealers are reporting a strong appetite from investors in acquiring physical silver products including silver bars as well as silver coins. said Michael DiRienzo, Executive Director of the Silver Institute.
Investors are also heavily buying silver backed exchange traded products. The institute reported 631 million ounces of Silver were held in these ETFs through Feb, 14 that is 100.9% more than the holdings seen at the end of 2008. Consumption of Silver is expected to increase by 3% in this year compare to 2013.
We may not see heavy fall in this metal prices if industrial demand sustains. It could be possible that Silver demand as haven asset drop but that might not bottom out prices. We are expecting that dampening U.S. economic growth and slow pace of emerging economies may keep Silver in demand.