Silver Investment Demand Set to Overcome Strong Headwinds

Silver Investment Demand Set to Overcome Strong Headwinds from Slide in Fabrication Demand this Year – Investment in Silver Poised to Continue

(Washington, D.C. – April 22, 2009) The Silver Institute has today released a major new report entitled, The Silver Investment Market, prepared by leading precious metals consultancy GFMS Ltd. The 40-page report, which can be downloaded free of charge from the Silver Institute’s and GFMS’ web sites, describes and measures the contribution made by investors to the silver market.

One of the report’s conclusions regarding the market this year is that investment demand, principally from ETFs and in the form of direct purchases of bars and coins, will increase sufficiently to offset a fall in industrial demand. Industrial demand, and to a lesser extent other areas of fabrication (excluding coins), is being hit by the global economic slowdown. However, the crisis is proving to be a major stimulus for investment in silver, with booming sales of bullion products and, through to the end of March, a 63.54 Moz (1,976.3 t) rise in ETF holdings. These swings in the composition of demand have taken place in the context of firm silver prices – basis the London silver fix; in the first quarter the silver price averaged $12.60/oz, which although down year-on-year was up 23 percent compared to the fourth quarter of 2008.

To download the report, please click the link below on the Silver Institute web site:
https://www.silverinstitute.org/images/pdfs/SilverInvestReport09.pdf

To download from the GFMS Ltd., please click this link: http://www.gfms.co.uk/

For more information, please contact Michael DiRienzo at the Silver Institute at 202-835-0185, or Philip Klapwijk at ++44 (0) 20 7478 1777.

The Silver Institute is a nonprofit international industry association headquartered in Washington, D.C. Established in 1971, the Institute serves as the industry’s voice in increasing public understanding of the value and many uses of silver. The Silver Institute’s web site can be found at www.silverinstitute.org.