[ad_1]
Physical silver demand remains high
Of course, inflation protection and uncertainty are good reasons to buy and own silver. And as I described above, inflation seems to be coming back with a vengeance. In any case, many investors hedge against the risk of it getting stuck.
Physical silver prices have been higher than normal for the past 15 months. This is because the demand for physical products remains high, resulting in persistently high premiums over the spot price. And that’s if you can get your hands on them at all. Many of the most popular coins and bars are constantly out of print. The premiums are typically 40% or more, which is almost three times the normal level.
Additionally, in its latest World Silver Survey 2021, the Silver Institute predicts continued strength this year. They expect physical demand to grow 26% after a very strong 2020. In fact, they expect aggregate demand from all sectors to grow 15%, almost doubling the 8% supply growth.
Particularly noteworthy is the demand for flexible electronics. The Silver Institute states that the demand for silver in printed and flexible electronics is approximately 48 million ounces annually. They predict that demand will rise to about 74 million ounces in 2030, with 615 million ounces of silver absorbed in that decade alone.
As technology becomes more important in our daily lives around the world, printed and flexible electronics are likely to play a bigger role. Be aware that wearable electronics such as smartwatches, home appliances, medical devices, and a wide variety of internet-connected devices are exploding. Sensors for light, movement, temperature, humidity and movement use printed and flexible electronics.
So it is clear that the electronics subsector holds the promise of the fastest growing demand for industrial silver use.
Silver’s outlook for the season is bullish
Another indicator that now could be a good time to be bullish on silver is the seasonal trend.
The following is a 45 year chart from 1975 to 2020 that shows the average of the annual silver price trend.
[ad_2]
