Page 20 - Bullion World Volume 3 Issue 1 2023

Bullion World | Volume 3 | Issue 1 | January 2023

• Silver Inventory at COMEX and
Global consumption of the white metal is LBMA warehouses is shrinking
expected to hit a new all-time high in 2022, continuously and stands at a
driven by post-pandemic industrial and • multi-year low.
As per the CFTC report,
physical investment demand. According to commercials and non-
the Silver Institute, the Silver market is in commercials have extremely
a deficit of 71.5 Moz in 2022, a 38 per cent low net positions, historically

rise from 2021 when it was 51.8 Moz. low in Silver. This is a setup that
supports rising silver prices.,
as the short squeeze will take
prices higher.
Ukraine. The second and third India’s silver imports are
quarter was negatively impacted by estimated to be at record levels Having said that, there would be two
aggressive FED rate hikes. Since of around 10,000 tonnes in 2022 headwinds for bullion prices, which
Sovereign Metals Limited is in the
the fourth quarter, we have had on the heels of a rise in jewellery can lead not so good performance business of refining precious metals
strong demand from retailers and consumption in 2023. Bullion prices could edge
(gold and silver) and supplying
wholesalers, a supply deficit and a • Open Interest on silver is below lower if the US economy avoids highest and most consistent quality
hawkish tone of FED. August of 2010 when Silver a recession and the Fed doubles products and related services and
The demand outlook for silver moved from $18 to $50 an down on the tight policy outlook with solution to customers at their place
remains solid amid the global green ounce in 9 months. The big inflation not declining as desired. of convenience by leveraging its
energy push, boosting its industrial shorts that have been stopping Additionally, a reinstatement of competent and customer-focused
demand. The fundamentals of Silver the price of silver from going up coronavirus restrictions in China human resources, industry-leading
have become very strong in the last have covered their shorts and could force market participants to technology infrastructure and
quarter of 2022: they are out of the market now reassess the demand outlook and transparent and globally
• Global consumption of the white • According to the Silver Institute, make it difficult for bullion prices to compliant-sourcing practices.
metal is expected to hit a new the Silver market is in a deficit of gain traction.
all-time high in 2022, driven by 71.5 Moz in 2022, a 38 per cent Sovereign Metals Limited would
post-pandemic industrial and rise from 2021 when it was 51.8 The best way to stay invested in Gold pursue environmentally sustainable
physical investment demand. Moz. and Silver is by buying Augmont manufacturing practices and would
Digital Gold and Digital Silver in strive to be a world leader in its
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touch the levels of Rs 80000 and Rs 83000/kg.

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