Silver Institute Releases Silver Investment Market Report

The Silver Institute released a report today titled "The Silver Investment Market -- An Update," which forecasts world silver investment will reach a record high total of $10 billion in 2011, representing a 66 percent increase over the $6 billion posted in 2010.

Other findings from the report include:

• The outlook for silver prices is bullish for the remainder of 2011 and into 2012;
• Silver investment has become a key area of the global silver supply/demand balance;
• Since the beginning of 2008, global Exchange Traded Fund (ETF) holdings have grown by 364 million ounces (Moz) to 577 Moz on October 31, 2011; and
• This year, a fresh peak of 41 million coins is forecast for the U.S. Mint's American Eagle silver bullion coin sales, eclipsing last year's record of 34 million coins. Globally, bullion coin sales are on target to post another record high.

The report, prepared by Thomson Reuters GFMS, covers several key areas of silver investment, including a market overview, who is investing in silver and why, investment in paper instruments linked to silver, physical investment in western and developing markets, silver mining stocks, and an analysis of privately held silver bullion stocks.

"This update examines how silver's price characteristics, including its safe haven status and price volatility have appealed to different groups of investors, and how they have reacted to price variations, as well as the changing economic backdrop," explained Michael DiRienzo, Executive Director of the Silver Institute. "We believe this report will give silver market participants a fresh look into silver's role as an investment," he added