Benzinga: Silver's Supply Crunch Sparks Bull Case: Report
Article by Stjepan Kalinic in Benzinga
After the first seven months of the year, silver has surged 26%, positioning itself as one of the top-performing commodities.Yet, recent analysis shows that this run is just starting, as shrinking supply points to the growing possibility of a price squeeze.
Sprott Management Analysts have elaborated on this thesis in the mid-year outlook, citing tightening supply and rising industrial demand.
"The available inventory of freely traded silver has been heavily diminished, making the metal more sensitive to incremental buying,"said Maria Smirnova, senior portfolio manager at Sprott. "Small increases in demand could now lead to disproportionately large increases in price."
According to Sprott, the global silver market is heading for its seventh consecutive year of deficit. Based on data from the .....