Silver prices advanced during the last week, despite gold slipping slightly, but still couldn’t manage to reach the highs seen during the preceding two weeks.
Commodities have been drifting lower lately on concerns about the global economy. However, the white metal‘s common use in industry and jewellery has granted enough strength to silver for many analysts to affirm their bullish outlook.
Silver‘s demand in China is witnessing an increase as imports are set to hit a new high. China has turned from a net exporter of silver to a big net importer, as industrial and investment demand continued to rise to new levels. “For the first time, China’s net imports of silver hit a record high as they quadrupled in 2010 to 3,500 tonnes,” said a bullion analyst at a foreign brokerage house. “Though many commodities have been affected by softer Chinese and US economic data and worries about Greece‘s debt, in China silver continues to be strong,” they added. Analysts believe a slowing US economy, the European debt crisis and a weaker dollar may all help contribute to the fortunes of silver.
Hence, share in the silver mine developer, Bear Creek, tumbled as much as 10% as anti – mining protests resumed in southern Peru.