Author: Paul Ploumis
23 Oct 2014 Last updated at 07:50:17 GMT
NEW DELHI (Scrap Monster): The latest research report released by CPM Group states that investment demand for silver is likely to remain robust in the upcoming years. The report commissioned for the Silver Institute foresees strong investment demand growth over the next decade.

According to the report, nearly 860 million Oz of silver has been purchased for investment since 2006. The various investment instruments may see accumulation of additional 1 billion ounces of silver in the next ten years. The report predicts a marginal drop in investment demand in 2014. The demand may slip to 90 million Oz during the year, dropping nearly 15% when compared with the 105 million Oz in 2013.

The economic growth across the world is expected to remain sluggish during the next decade. On the other hand, industrial demand for silver is likely to surge higher during this period. The weakening economic growth may lift silver's safe-haven appeal along with gold.

However, slowdown in economy may diminish silver's industrial usage.

Over the years, silver prices are positively correlated with investment demand. Though there are signs of recovery across world economies, the pace of growth does not seem to be encouraging. This may intensify the investment demand for silver, which in turn may take the silver prices to fresh record highs.