The “year that was” brought mostly disappointment to precious metals bulls. Silver prices fell for the third straight year, while gold mostly flat-lined around the $1,200 per-ounce level. So what about the year to come? On the one hand, the charts looks...
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The “year that was” brought mostly disappointment to precious metals bulls. Silver prices fell for the third straight year, while gold mostly flat-lined around the $1,200 per-ounce level. So what about the year to come? On the one hand, the charts looks ugly. On the other, it is rare for any metal to fall in price four years in a row. As for the fundamentals of precious metals, they are actually getting better. The down-trending prices we’ve experienced improve the fundamentals for physical precious metals in two important ways: • First, by discouraging new supply from coming on line. In 2014, many miners were forced to suspend operations as gold and silver spot prices fell below production costs. • Second, by encouraging more jewelry demand for gold and more industrial consumption of silver. On December 10, the Silver Institute released a report (“Glistening particles of industrial silver”) analyzing industrial demand for silver from various sources. Silver is used in batteries, compu
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