Silver may track Gold despite industrial demand

Published: Jun 8, 2016 09:51

Save

Citi Research said that industrial demand is unlikely to provide a silver lining for silver, with the metal eventually weakening whenever gold does.

UNITED STATES June 07 2016 11:18 PM

NEW YORK (Scrap Register): Citi Research said that industrial demand is unlikely to provide a silver lining for silver, with the metal eventually weakening whenever gold does.

Silver is a pseudo-industrial metal with many applications from photography to photovoltaic; still, the rolling 30-day correlation to gold remains high at 0.85, the bank added.

“As such, we note structural trends have a limited influence on market prices and suggest a combination of weakening gold prices as well as improved supply -- including scrap -- would point to silver prices averaging just over $15 an ounce in 2017, down from this year’s average of $16.20 an ounce.”

Citi issued an upbeat report on gold for the second half of the year on Monday, but nevertheless said it looks for gold sentiment to eventually soften by year-end

silver prices gold prices

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

Feb 6, 2026 19:50

Lead Prices Stagnant, Smelters Maintain Firm Offers Amid Losses

Lead prices were in the doldrums, while secondary lead smelters maintained firm offers due to losses. The mainstream spot order ex-factory prices including tax narrowed the discount to the SMM #1 lead average price by 100 yuan/mt, shifting to a premium of 0–25 yuan/mt, with some smelters halting offers and sales.

Feb 6, 2026 19:50

Feb 6, 2026 19:49

"Domestic Secondary Crude Lead Market Slows as Holidays Approach, Smelters Halt Production"

Pre-holiday stockpiling by downstream enterprises had largely concluded, and a few had already entered the holiday period, completely suspending procurement. Next week, secondary lead smelters will enter a concentrated wave of production halts and holidays, resulting in sluggish trading activity in the spot market. Offers for spot refined lead orders were sparse, with prices moving in line with the market.

Feb 6, 2026 19:49

Feb 6, 2026 19:48

Sluggish Transactions in Domestic Secondary Crude Lead Market, Prices at 15,250-15,400 Yuan/mt

The domestic secondary crude lead market experienced sluggish transactions. As of February 6, 2026, the ex-factory tax-exclusive offers for domestic secondary crude lead stood at 15,250-15,400 yuan/mt. Downstream refined lead and alloy smelters gradually entered the holiday period, showing weak stockpiling willingness. Overseas lead ingot suppliers basically halted transactions with China due to poor consumption in the Chinese market, with only some previously concluded shipments maintaining normal in-transit transportation. The trading atmosphere in the secondary crude lead market will continue to weaken next week.

Feb 6, 2026 19:48