As the U.S. dollar index corrected after a continuous surge on Tuesday and Sunday, and the Japanese earthquake triggered a rebound in risk aversion in the market, spot silver fluctuated higher after the opening, and maintained trading around the U.S. dollar per ounce at the opening on Wednesday. The global silver market is expected to post a fourth consecutive supply deficit in 2020, with a shortfall of 10,000 ounces, the Thomson Reuters team said in its mid-term silver market yearbook. The consultancy predicts the silver market will be in a supply deficit for a fourth year following annual declines in both supply and demand. The forecast deficit is the smallest since a 10,000-ounce surplus in 2018.
Senior analyst John Weber outlined the results of the consultation Wednesday evening at the annual Silver Industry Dinner hosted by the New York Silver Association. While such deficits don't necessarily affect prices in the short term, years of consecutive deficits could put upward pressure on prices in subsequent periods, it said.
If the expected net inflow of 10,000 ounces of silver into global exchange-traded products and the 10,000 ounces of silver inventory established by derivatives exchanges by the end of the month are included, the annual deficit will be 10,000 ounces, approximately Equivalent to weeks of global demand, said. Surface inventories, including exchange-listed products and exchange-based inventories, are estimated to reach 100 million ounces in 2020, up from the previous year.
The consulting firm said that as of March this year, the average price of silver was US dollars per ounce, an increase from the same period last year. The team expects full-year silver prices to average $1.2 billion, up year-on-year.
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Baishan Weiye official website information-Silver price has upward momentum