UNITED STATES August 14 2014 7:15 AM
NEW YORK (Scrap Register): Silver's underperformance in recent weeks has pushed the gold:silver ratio to the highest levels since early June, said ETF Securities.
The recent weakness is largely the product of a strengthening US Dollar and the stabilization of COMEX silver stockpiles after a several weeks of destocking. In contrast, stockpiles on the Shanghai Futures Exchange have reached their lowest level in over two years.
A recent report from The Silver Institute suggests that silver demand is expected to grow at around 5% per annum between 2014 and 2016, higher than the rate of global growth.
Accordingly, ETF Securities feels that silver's structural indust rial prospects are bright, especially from the electronics and electrical sector.
This week's US industrial production numbers should highlight the improving economic landscape. In the medium term ETF Securities expects the trend of destocking and price appreciation to resume as the global recovery gains pace.