Silver Shortage Imminent Part II

Posted by Paul Ausick via 24/7 Wall Street

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Ed Note: David Morgan’s comments on industrial demand alone for Silver in his interview with Michael Campbell on July 9th/2011 were quite large as you can review in this article – Silver Shortage Imminent.

Here are some additional comments on Silver’s industrial, and Investment demand from Silver Trusts…. very big numbers!

“About 25% of silver demand comes from investors, but they are now driving the bus as they seek a cheaper inflation hedge than gold. The iShares Silver Trust (NYSE: SLV) now holds about 11,000 metric tons of silver in its vaults. Global silver production for 2010 reached nearly 23,000 metric tons, a record high, and about 80% of global demand. The rest comes from recycling.

Global industrial demand for gold is about 10% of total demand. Almost half of gold demand comes from jewellery compared with about 25% of silver demand. Gold demand for investment totals about 40% of the world’s total demand for gold. The SPDR Gold Trust (NYSE: GLD) holds about 1,130 metric tons. Mining contributed about 60% of the world’s gold supply in 2010, with most of the remaining supply coming from recycling.

Because so much more of the silver stock is used for industrial purposes, the price of silver is (or should be) more vulnerable to changes in the business cycle. Currently, however, even as the economy improves only slightly, the price of silver keeps surging.

….read the entire article Will the Silver Rush Kill a Faltering Economy?