A new research report released by the CPM Group predicts continued silver production and investor demand increases in 2009. The Silver Yearbook 2009 notes that investors have been turning to silver and other precious metals as a safe haven in difficult economic times and that near record increase in prices over the past few years are a reflection of this trend. According to the report, investors purchased 102 Moz of silver in 2008. For 2009, CPM projects that investors will purchase 182 Moz of silver.
In 2008, silver supply of 803.2 Moz was up 2.3% from 785.5 Moz in 2007, with mine production up 2.7% in 2008 to 548.7 Moz and secondary scrap recovery of silver up 4.7% to 254.5 Moz. The combination of global recessionary factors and high silver prices resulted in a drop in fabrication demand, which was down 3.1% in 2008 to 701.2 Moz. Fabrication demand is expected to drop further this year to 641 Moz.