The Projected Factors That Would Back Silver Prices in 2018

Silver Jewlery

Investors can anticipate volatility in silver prices through 2018. The market has a potential to move higher, which can be attributed to growing demand and shrinking supply, as per the experts.

Silver enjoys a versatile landscape and has unrivaled characteristics that are perfect for industrial products like the jewelry sector. In this context, Michael DiRienzo, Executive Director of the Silver Institute stated that the strong industrial demand, jewelry demand, coin demand, and renewed investor interest would continue to back the market even as mine production is expected to decline for the second consecutive year by nearly 2% in 2018.

In the context of the demand side, DiRienzo said that electrification of the growing solar power demand and the automotive sector could be considered as two important factors that would boost the silver’s industrial demand. He also added that the silver demand for the photovoltaic cells could achieve a milestone record in 2018.

DiRienzo said that the diversity of silver was large, and added that the continued rising volumes of applications are expected to have a positive impact on silver consumption again from industrial products this year. Also, looking at the jewelry market, the demand might rise around 4% in 2018, which is around 1% increase from the last year.

Meanwhile, the physical bullion demand was considered as a disappointing sector last year, and the paper market would see a demand for silver-backed exchange-traded products to rise 3% in 2018.

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