The price of silver, which in early June received a boost from a bullish report by The Silver Institute of Washington, D.C., continues to trade well in New York.
Spot price of the precious metal on the Commodity Exchange of New York was recently trading in the US$4.45-per-oz. range. The September futures price was above US$4.50.
The institute reported that demand for silver in 1990 exceeded supply by 24.4 million oz., marking the first time in more than a decade that the silver market had shifted from a net supply surplus to a net deficit. Supply from mine production and secondary sources totalled 500.6 million oz. last year, the institute said.
Earlier this year, the silver price fell to the US$3.60-3.65 range.
Primary output of the metal dropped last year as mining operations either closed or reduced production. A contributing factor was a silver price at or below the level of mine profitability.
According to the report, fabrication demand for the metal — in jewelry, photography, silverware, electronics and coinage — rose by 6% in 1990.
In another report, the institute said silver consumption in 1990 for commemorative and bullion coinage increased by 20% from the previous year. The 31.5 million oz. used for coinage was the highest level since 1975; most of the growth occurred in the sale of silver bullion coins to investors.
The U.S. and Japan were one-two in silver usage for coins last year.
The most popular bullion coin was the American Eagle silver dollar; Japan minted the most popular commemorative coin.
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