![]() By some estimates, industrial use of silver was 40% lower in the last quarter of 1979 than it had been in the first quarter of that year. However, a sharp cut-back in demand in the fourth quarter led to overall annual decreases in silver use. Demand had held up reasonably well during the first three quarters of the year. On an annual average basis, industrial silver use fell a relatively mild 0.9% to 445.1 million ounces in 1979. Silver prices ultimately fell to below $11 an ounce two months later.Īs silver prices rose above $15.00 in September 1979, fabrication demand began to be affected. During the Hunt brothers’ accumulation of the silver, prices of silver bullion rose from $11 an ounce in September 1979 to $49.45 an ounce in January 1980 based on London PM Fix. futures exchanges that traded silver at the time took steps to force those with margined long positions to liquidate their positions. At these levels several physical market forces combined to act against higher prices. Simplistic retrospectives of the silver market in late 1979 tend to focus on the high-profile purchases of large amounts of silver and silver futures by various wealthy individuals in reality, there was a tremendously broad-based rush to buy silver by investors worldwide at the time.īy the final quarter of 1979, silver prices had risen to levels between $15.00 and $25.00 per ounce. This added further upward pressure to the price of silver. Investors ceased selling their old silver holdings, and instead began adding to their holdings. Sensing that silver prices should be adjusting upward to compensate for these inflationary trends, many investors decided that silver prices between $4.00 and $5.50, which had prevailed during most of the late 1970s, were too low. World economic and political events also were coming to bear on the silver market, most notably in the form of a major cyclical upward surge in inflation throughout the industrialized world. Prices had risen from the beginning of the decade, but there were serious questions as to how much longer investors would be willing and able to continue supplying silver to fabricators, at least at the prices seen in the mid-1970s. The market had been living off of investor selling for seven years. (yearly average prices based on London PM Fix)īy 1979, investors and other market participants had come to the strong conviction that the silver market was facing a severe shortage of metal, and that prices were likely to rise sharply at some point. How our Silver Mining and Refining Companies Operate Responsibly.Member Company Sustainability Reporting & Information.The rise in demand has been allowing banks and bullion dealers to charge premiums of up to 30 cents per ounce over global prices, while gold is trading at a discount. The country fulfils most of its silver requirements through imports, mainly from Hong Kong, the United Kingdom, China and Russia. India has been offering production-linked incentives to local and foreign companies for manufacturing electronics and solar panels in the country. These industries are consuming more and more silver along with the auto industry. Electronics and solar panel manufacturing have been increasing in India because of the government incentives. Local silver futures were trading around 57,900 rupees per kilogram on Wednesday afternoon after hitting a record high of 77,949 rupees in 2020.Īlong with investment demand, imports have also climbed on growing industrial use. India silver imports in 20 were 2,218 tonnes and 2,773 tonnes respectively, down from 5,969 tonnes in 2019. In 20 Indian investors and industry sold off silver stocks after strong imports in 20. In the first seven months of 2022, silver imports surged to 5,100 tonnes from just 110 tonnes during the same period a year ago, according to provisional data from Ministry of Commerce and Industry. It is being estimated that India’s silver imports in 2022 could jump to a record 8,200 tonnes. Higher demand in India, the world’s biggest silver consumer, could support global prices. India’s silver imports are set to triple in 2022 from a year ago to record highs after a dip in prices to 2-year lows spurred investors to bet that the metal was primed for a rebound and could outperform gold in the coming years. ![]()
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