Washington, D.C, United States, Sep 20, 2012 - (ABN Newswire) - Investors are continuing to be bullish on silver in 2012, increasing their holdings of the precious metal that are at near record levels, said the Washington, D.C.-based Silver Institute today. Investors have so far purchased more than 32 million ounces of the white metal through silver-backed exchange-traded products this year. Exchange-traded fund holdings now total more than 608 million ounces with a value of $20.5 billion through September 15.
The silver price has risen more than 20% since the beginning of this year. Significantly, from January 2009 through September 15, 2012, the silver price has increased an astounding 211%. Factors leading to the price increase include a desire by investors to diversify their portfolios with hard assets, the diminished value of key currencies and continued global economic uncertainty.
Silver also enjoys a wide range of important uses in industry. Industrial applications accounted for over half of world fabrication demand in 2011. Unlike gold fabrication, which is heavily reliant on jewelry, silver can call on a more diverse range of applications. Furthermore, in the short-term, many of these uses are relatively price inelastic, helping to create strong price support.
But what is driving the price of silver today is investor demand, say many precious metals analysts. In fact, some analysts have increased their fourth quarter silver price projections given silver's recent price performance.
"Investors and analysts are bullish on expectations that additional central banks will do more to attempt to stimulate economies in order to increase consumption and spur employment, leading to even greater investor attention on the 4,000 year allure of silver as a safe haven and a store of value," said Michael DiRienzo, Executive Director of the Silver Institute.
About The Silver Institute:
The Silver Institute is a nonprofit international association that draws its membership from across the breadth of the silver industry. This includes leading silver mining houses, refiners, bullion suppliers, manufacturers of silver products and wholesalers of silver investment products. Established in 1971, the Institute serves as the industry's voice in increasing public understanding of the many uses and values of silver. For more information on the Silver Institute, or silver in general, please visit www.silverinstitute.org.
Contact: Michael DiRienzo The Silver Institute T: (202) 495-4030 e-mail: email@example.com Media: Victor Webb Marston Webb International T: (212) 684-6601 e-mail: firstname.lastname@example.org
The Silver Institute
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