Silver Supply Seen as in Surplus and Staying That Way
Source: Mineweb.com (1/25/08)
The second issue of The Silver Book, sponsored by Fortis Bank and compiled by research house VM Group states that the silver market was in surplus in 2007 by 6,141 tonnes and expects the market to remain in surplus this year, with photographic demand continuing to fall rapidly.
The surplus for this year is projected at 7,315 tonnes, or 14 weeks' demand, despite the fact that jewellery is likely to make a modest recovery as consumers adjust to higher prices. There will be some good news from newer applications, notably wood preservatives, while demand for the Exchange Traded Funds is likely to continue, but at a lower level of approximately 800 tonnes. ETF demand in 2007 was 2,147 tonnes.