Start here-investing-in-silver

Start Here Investing in Silver
© 2017 Silver Investing News 1
Table of Contents
What Was the Highest Price for Silver?.........................................................................................................2
5 Factors That Drive Silver Demand ..............................................................................................................5
Top Silver Production by Country in 2016.....................................................................................................8
5 Silver ETFs at a Glance ..............................................................................................................................12
Silver Stocks that Pay Dividends..................................................................................................................14
Silver Price Outlook 2017.............................................................................................................................17

What Was the Highest Price for Silver?
What was the highest price for silver and when was it reached?
Find out here.
The silver price surged last year, buoyed by
worldwide political concerns such as Brexit and
proposed policies from US Donald President
Trump. Since then, the white metal has continued
to trend upward — during Q1 2017 it rose roughly 9
percent.
Because of that positive price activity, many silver-
focused investors believe that the precious metal‘s
price could rise even higher this year. Experts are also
optimistic, and as a result some market watchers are beginning to ask themselves,
“what was the highest price for silver?”
The answer to that question reveals how much potential there is for the silver price to
rise. Read on for a brief overview of how the silver price has moved in the past, and
what that could mean for the future.
How is silver traded?
Before answering the question “what was the highest price for silver?” it’s worth looking
at how silver is traded. Knowing the mechanics behind how the metal changes hands
can be useful in understanding why and how its price changes.
Put simply, silver is traded in dollars and cents per ounce, with market activity taking
place worldwide at all hours of the day. Key commodities markets like New York,
London and Hong Kong are just a few locations where investors trade the metal.
London is the center of physical silver trade, while the COMEX division of the New York
Mercantile Exchange, or NYMEX, is where most paper trading is done.
Physical silver is sold on the spot market, meaning that buyers pay a specific price for
the metal and then have it delivered immediately. Paper trading is done via the futures
market, with participants agreeing for the delivery of silver in the future at an agreed-
upon price. In such contracts, two positions can be taken: a long position to accept
delivery of the metal, or a short position to provide delivery of the metal.
Paper trading might sound like a strange route to take, but it can provide investors with
flexibility that they wouldn’t get from buying and selling physical silver. The most
obvious advantage is perhaps the fact that trading in the paper markets means market

participants can benefit from holding silver without needing to store it. Furthermore,
futures trading can offer more financial leverage in that it requires less capital than
trading in the physical market.
Historical silver price action
In terms of historical price action, silver hit $48.70 per ounce, its highest price
ever, towards the end of the 1970s. However, it didn’t exactly reach that level by honest
means — as Investopedia explains, the metal’s rise was driven by the Hunt brothers,
two wealthy traders who attempted to corner the market by buying not only physical
silver, but also silver futures; they then took delivery of that silver instead of taking cash
settlements. Their exploits ultimately in disaster: on March 27, 1980, they missed a
margin call and the silver price plunged to $11.
Interestingly, despite that price action, silver’s highest average annual price didn’t come
until 2011, when it hit $35.12. The rise came on the back of very strong silver
investment demand, and was more than double the 2009 average silver price of $14.67.
2011 was also the year that silver hit its highest price in recent years. The below chart
from Kitco spans from the start of January 2011 to mid-March 2017, and shows that the
silver price reached $47.94 in April 2011.
Chart via Kitco.
Like other commodities, silver’s price is most heavily influenced by supply and demand
dynamics. However, as the stats above illustrate, the silver price can be very volatile.
That is partially due to the fact that the metal is subject to both investment and industrial
demand. In other words, it’s bought by investors interested in using it as a store of
wealth as well as by manufacturers looking to use it for different applications. Those
applications are incredibly varied
— silver has diverse technological applications and is used in devices like batteries and
catalysts, but it’s also used in medicine and in the automotive industry.

Looking at supply, in 2016, the world’s three top producers of the metal were Mexico,
Peru and China. Interestingly, even in those countries the white metal is usually
produced as a by-product — for instance, a mine producing primarily gold might also
have silver output.
Beware silver price manipulation
As a final note on the silver price, it’s important for investors to be aware that price
manipulation is a major issue in the space. JPMorgan Chase (NYSE:JPM) was long at
the center of such claims, though the case against it was dismissed in 2014.
More recently, after 10 banks were hit in a US probe on precious metals manipulation in
2015, evidence provided by Deutsche Bank (NYSE:DB), showed “smoking gun” proof
that UBS Group (NYSE:UBS), HSBC Holdings (NYSE:HSBC), the Bank of Nova Scotia
(NYSE:BNS) and other firms were involved in rigging the silver market from 2007 to
2013.
While that might sound disheartening, key industry figures like silver guru David Morgan
have emphasized that in reality the silver market is no more manipulated than any other
market. Furthermore, in 2014, the London Silver Market Fixing stopped
administering the London silver fix, which had been used for over a century to fix the
price of silver. It was replaced by the LBMA Silver Price, which is run by the LBMA,
CME Group (NASDAQ:CME) and Thomson Reuters (TSX:TRI,NYSE:TRI), in a bid to
increase market transparency.
Investor takeaway
While there’s a concrete answer to the question “what was the highest price for silver,”
it’s anyone’s guess whether it will reach those heights once again. Investors will no
doubt be watching to see how the metal fares for the rest of 2017 and beyond.

5 Factors That Drive Silver Demand
Investors should watch out for these five factors that impact silver
demand.
Known as the world’s most versatile metal for its
unique properties, silver is used in many
applications, from everyday silverware to medicine.
Industrial and technological use of silver accounts
for well over half annual demand, due to the metal’s
strength, malleability and ductility.
In 2016, global physical demand for silver was projected
to decrease in most sectors, including electrical and electronics, brazing solders and
alloys, and photography, according to the USGS. But an increased demand will come
from the solar industry, since the precious metal is a great conductor of both heat and
electricity making it a perfect conductor for solar panels.
Here’s a look at five factors that investors should keep an eye on that are driving silver
demand, according to the most recent data from the Silver Institute.
1. Industrial Applications
Silver is the best electrical and thermal conductor of all metals and so is used in many
electrical
applications, particularly in conductors, switches, contacts and fuses.
The most significant uses of silver in electronics are in the preparation of thick-film
pastes,
in multi-layer ceramic capacitors, in the manufacture of membrane switches, silvered
film in electrically heated automobile windshields and in conductive adhesives.
In 2015, demand from industrial applications saw a 4 percent decline from the previous
year, reaching 588.7 Moz, its lowest level since 2009. Among many other industrial
applications, photovoltaics, or solar panels, the automotive industry and brazing and
soldering are the main applications increasing silver demand.
Solar Panels
Silver used in the fabrication of photovoltaic cells, more commonly known as solar
panels, is seen as an area of rapid growth in the short to medium term.
The GTM Research and the Solar Energy Industries Association expect photovoltaic
installation to triple between 2015-2020.

Using silver as conductive ink, photovoltaic cells transform sunlight into electricity. In
2015, photovoltaic demand for silver was up significantly by 23 percent, compared to
the previous year at 77.6 Moz. China was the main country driving this increased
demand.
Automotive Industry
Over 36 million ounces of silver are used annually in automobiles, as every electrical
action in a modern car is activated with silver coated contacts. Basic functions such as
starting the engine, opening power windows, adjusting power seats and closing a power
trunk are all activated using a silver membrane switch.
Brazing and Soldering
Adding silver to the process of soldering or brazing helps produce smooth, leak-tight
and corrosion-resistant joint when combining metal parts. In addition, silver brazing
alloys are used widely in everything from air-conditioning and refrigeration to electric
power distribution.
2. Jewelry
When it comes to jewelry, few materials are better suited for it than silver. Lustrous but
resilient, it responds well to sculpting, requires minimal care and lasts for a lifetime.
Silver possesses working qualities similar to gold, enjoys greater reflectivity and can
achieve the most brilliant polish of any metal. In 2015, jewelry fabrication increased for
the third consecutive year to hit a fresh record high of 292.3 Moz.
3. Silverware
Sterling silver has been the standard for silver hollowware and silver flatware since the
14th century. When you buy silver cutlery or other silver décor, it will last for generations
to come, as it resists tarnish and is a traditional decoration in homes around the world.
Copper is mixed with silver to strengthen it for use as cutlery, bowls and decorative
items. In 2015, demand from silverware was slightly up from 60.7 Moz to reach 62.9
Moz.
4. Photography
Photography used to be the main end-use of silver, reaching its peak in 1999 when it
represented 25 percent of total fabrication. Because the popularity of digital
photography has all but replaced film photography among mainstream consumers, the
use of silver-based imaging has been steadily dropping for almost a decade.

Within five years, photographic demand slipped below 20 percent of total demand, and
dropped to 9 percent by 2013. In 2015, demand continued to fall by a further 4 percent
compared to the previous year, reaching the lowest level at 46.7 Moz.
That said, silver is still essential for medical X-Ray technicians and those in the motion
picture industry, which remain a big consumer of the precious metal.
5. Coins and Bars
Minted silver coins were first used in the eastern Mediterranean region in 550 B.C. and
by 269 B.C, the Roman Empire adopted silver as part of its standard coinage. Silver
was the main circulating currency until the 19th century, when it was gradually phased
out of regular coinage after the gold rushes.
Despite this, silver is still used in some circulating coins and especially in American,
Australian, Canadian, Mexican and Austrian bullion coins for investors. Silver coin
fabrication rebounded in 2015, rising by 24 percent, reaching the highest level in record,
according to the Silver Institute, at 134.1 Moz.

Top Silver Production by Country in
2016
The most recent estimates from the US Geological Survey show
that Mexico produced the most silver in 2016. Peru and China
came second and third.
While it’s perhaps most important for silver-
focused investors to be aware of how the
metal is traded and when its price may rise
again, those interested in the metal would
also do well to be aware of which country
has the most silver.
Knowing which country has the most silver is
important for a number of reasons. Perhaps most crucially, having that knowledge can
help investors identify silver investing opportunities. For example, if an investor is aware
that a country is a major silver producer, they might consider investing in silver
companies working in that country.
A silver investor following that strategy would likely have at least a little luck. Case in
point: Mexico was the world’s largest silver producer in 2016, and because it’s a mining-
friendly environment, many silver companies are seeing exploration and mining success
in the nation.
However, that strategy won’t work in every case. Some major metals producers are less
hospitable to public companies, preferring instead to extract the bulk of their resources
via state-owned companies. That is often the case in China, though interestingly
Silvercorp Metals (TSX:SVM) bills itself as the country’s largest primary silver producer.
All in all, those factors make it worth investors’ while to look at which country has the
most silver. Here’s a brief overview of the 10 top silver-producing countries of 2016,
based on the latest estimates from the US Geological Survey.
1. Mexico
Mine production: 5,600 MT
Mexico remained the world’s largest silver producer in 2016, with its output rising 230
MT from 2015 to hit 5,600 MT.

The country is home to Fresnillo (LSE:FRES), one of the most productive silver
companies in the world. Fresnillo extracts silver and gold at six different
mines in Mexico, and has several other projects in various stages of development. Last
month, the company released its Q4 2016 production report, noting that it
achieved record annual production of 50.3 million ounces of silver — that’s a 7.1-
percent increase compared year-on-year. The company expects 2017 production to be
in the range of 58 to 61 million ounces.
Goldcorp (TSX:G,NYSE:GG) is Mexico’s other large silver producer, and its Penasquito
mine posted the second-highest silver production in the world in 2013. Like many silver
mines, Penasquito primarily produces gold — silver is often coincident with other
resources, and is regularly mined as a by-product.
2. Peru
In addition to being the world’s second-biggest silver producer, putting out 4,100 MT in
2016, Peru features the world’s largest-known silver reserves. With 120,000 known MT
of silver, the country has a massive amount of untapped silver potential that could allow
it to move up the rankings in the future.
The majority of Peru’s silver comes from the Antamina mine in Northern Peru, according
to Kitco. The mine is a joint venture between BHP Billiton
(ASX:BHP,NYSE:BHP,LSE:BLT), Glencore (LSE:GLEN), Teck Resources (TSX:TCK.B)
and Mitsubishi (TSE:8058). While the mine produces more silver than any other in the
country, it is primarily a copper mine, and silver is produced as a by-product.
Fortuna Silver Mines (TSX:FVI) is rapidly growing its silver production with two
operating mines, one of which is in Peru. The company reported 2016 silver
production of 7,380,217 ounces, 5 percent above its guidance for the year.
3. China
Back in 2002, China was the world’s fourth-largest silver producer, and the Silver
Institute described it as a “solid ‘mid-tier’ producer of silver.” Since then, the country’s
production has steadily increased to make it the third-biggest silver producer in the
world; 2016 output came in at 3,600 MT. The Silver Institute attributes a large part of
this rise to China’s development of other mining operations — as of 2012, nearly 95
percent of Chinese silver production was a by-product of other mining projects.

As stated, Silvercorp Metals describes itself as China’s largest primary silver producer.
It has multiple mines in China, and most recently announced that its silver production for
the first three quarters of the 2017 fiscal year was above guidance by 2 percent.
4. Chile
There’s a pronounced difference between the amount of silver produced by the top
three global producers and the countries that fill in the rest of the top nine. Case in
point: Chile sits in fourth place and produced 1,500 MT of silver in 2016, an increase
from 1,380 MT in 2015. That rise boosted Chile from fifth-largest silver producer in the
world to fourth largest.
Encouragingly, it looks like more increases could occur in the future — in 2015, the
country’s Economic Development Agency announced a new program aimed at
increasing the country’s mining production by raising energy efficiency and cutting
costs. For the next several years, officials will discuss a plan that should increase the
country’s competitiveness through 2035.
5. Australia
Mines in Australia churned out 1,400 MT of silver in 2016, a slight decrease from 1,430
MT in 2015. That decline positioned the country as the fifth-largest silver producer in the
world. That said, silver mining has a rich history in Australia, and BHP Billiton began
there as a silver operation in the 1920s.
Today, BHP Billiton is a multinational mining company with projects located around the
world. It remains the largest silver producer in Australia, and operates the Cannington
mine in Queensland, which produces more silver than any other mine in the country.
6. Poland
Poland’s 2016 silver output matched Australia’s at 1,400 MT, showing an increase of
220 MT from the previous year. Poland-based KGHM Polska Miedsz (WSE:KGH) is
consistently one of the world’s top silver-producing companies, according to the Silver
Institute, and the company could expand to become larger. Poland has the world’s third-
largest silver reserves after Australia.

7. Russia
Russia dropped one place to become the world’s seventh-biggest silver-producing
country in 2016; its output slightly sunk from 1,430 MT in 2015 to 1,400 MT last year.
The country’s silver reserves are unknown, but it has been a top silver producer for
many years.
The country’s largest silver producer is Polymetal International (LSE:POLY). Polymetal
dominates silver mining in Russia and operates four of the top five silver mines in the
country. Last year, Polymetal produced 7 million ounces of silver, down 3 percent year-
on-year.
8. Bolivia
Bolivia’s silver output remained steady at 1,300 MT from 2015 to 2016, but Poland’s
leap up the ranks pushed it from seventh place to eighth place. Luckily, there is room for
the country’s silver industry to expand. Bolivia is home to several silver mines,
particularly in the Potosi region, and the San Cristobal mine, operated by Sumitomo
(TSE:8053), features the third-largest silver reserves of any mine.
9. United States
Mine production 1,100 MT
In 2016, the US produced 1,100 MT of silver from three dedicated silver mines and
37 base and precious metals mines. Its production sank from 1,190 MT in 2015. Alaska
and Nevada produce more silver than the nation’s other states, and the largest US-
based primary silver producer is Coeur Mining (NYSE:CDE). Coeur’s US projects are
not silver focused, but the company does operate silver mines in South America and
Australia.

5 Silver ETFs at a Glance
Interested in silver exchange-traded funds? Here's a look at five
worth considering.
Exchange-traded funds, or ETFs, have existed
since 1993, although it took 15 more years for
the first actively managed ETF to reach the
market.
Since then, ETFs have risen in popularity, in large
part because they are a cheaper investment option
than traditional mutual funds. Today a huge number
of ETFs are in play, and they focus on a variety of
spaces, from derivatives, to bonds, to commodities. Within the commodities space are
silver ETFS, and investors interested in these have many options to choose from.
For instance, some ETFs focus solely on physical silver, while others focus on silver
futures. Still others focus on the silver-mining industry itself. In order to determine which
silver ETF will best suit their needs, investors should examine the options available to
them. Here’s a brief look at five silver ETFs that may be worth considering.
1. iShares Silver Trust (ARCA:SLV)
As the iShares Silver Trust’s website warns, it is not your standard ETF. Why? Put
simply, the iShares Silver Trust is not an investment company registered under the
Investment Company Act of 1940 or a commodity pool under the Commodity Exchange
Act. Further, its shares aren’t subject to the regulatory requirements that apply to mutual
funds.
Investors who are not put off by those conditions may find the iShares Silver Trust
appealing. It uses the LBMA silver price as its benchmark and holds silver bullion —
10,303.74 tonnes, to be exact. Its net asset value clocks in at $5,600,630,126, and
since its inception has achieved an average annual return of 3.29 percent for its
investors.
2. Sprott Physical Silver Trust (ARCA:PSLV)
The Sprott Physical Silver Trust is also different from a typical ETF. It’s geared
at investors interested in holding physical silver, and has a total net asset value of
$967,086,217.

Silver held by the Sprott Physical Silver Trust is stored at a secure third-party location in
Canada, and is subject to periodic inspections. Investors who own a certain value
equivalent in dollars can redeem their units for physical silver each month, and it can be
delivered nearly anywhere in the world via armored carrier. The Sprott Physical Silver
Trust only invests in London Good Delivery physical silver bullion, less the 3 percent of
net assets devoted to expenses and anticipated redemptions.
3. Horizons COMEX Silver ETF (TSX:HUZ)
Established in June 2009, the Horizons COMEX Silver ETF seeks to deliver to investors
results that mirror the performance of the COMEX silver futures contract for the
subsequent delivery month. It is denominated in Canadian dollars, and for that reason
can in most cases hedge any US dollar gains and losses back into Canadian dollars.
The Horizons COMEX Silver ETF managed $6,011,996 in assets as of mid-March
2017, and its three-year return on investments is -7.59 percent. Its management fee is
0.65 percent, and its portfolio exposure as of March 2017 was entirely in silver for May
2017 delivery.
4. Global X Silver Miners ETF (ARCA:SIL)
The Global X Silver Miners ETF gives investors access to many silver-mining
companies and benefits from the fact that those companies can enjoy quick gains when
the price of the metal is rising. Given that it provides exposure to a basket of global
silver miners, it also allows investors to avoid the risks associated with individual
companies and lets them add geographical diversity to their portfolios.
The ETF’s annualized return since inception amounts to -3.39 percent at the market
price of silver.
5. PureFunds ISE Junior Silver ETF (ARCA:SILJ)
The PureFunds ISE Junior Silver ETF bills itself as “the first pure-play ETF that
exclusively aims to hold silver explorers and junior silver producers.” The index provides
a benchmark for investors to track public small-cap companies in the silver space.
The company’s investments span Canada, the US and the UK, with major holdings
including Endeavour Silver (TSX:EDR,NYSE:EXK), First Majestic Silver
(TSX:FR,NYSE:AG) and Fortuna Silver Mines (TSX:FVI,NYSE:FSM).

Silver Stocks that Pay Dividends
If you're wondering about silver stocks that pay dividends, look no
further — here are five.
As of April 24, 2017 the silver price was up by
12.72 percent since the start of the year.
However, there’s still a long way to go for the
white metal. That’s why some investors are
looking to the top silver stocks that pay
dividends.
A dividend is a sum of money that is paid regularly
by a company to a class of its shareholders out of
its earnings. Dividends are often issued as cash payments, but can also be issued as
stock or other property.
With that in mind, here’s a brief overview of five silver stocks that pay dividends. They
may be worth some attention as the silver price continues to rise.
A list of 5 silver stocks that pay dividends
1. Silver Wheaton (TSX:SLW,NYSE:SLW)
Silver Wheaton is a well-known name in the silver space, largely because of its
business model — it’s the world’s largest precious metals streaming company, which
means that it’s made upfront payments to a variety of companies in order to gain the
right to purchase, at a low, fixed cost, all or a portion of the companies’ silver
and gold production.
The company currently has streaming agreements in place for 22 operating mines and
eight development-stage projects. It is interested in companies operating in politically
stable jurisdictions, and states that it has growth potential as well as “[l]everage to
increases in the price of silver and gold.” As a result, Silver Wheaton sees itself as
offering investors multiple benefits while reducing many of the downside risks that
traditional mining companies face.
The highest dividend paid by Silver Wheaton was $0.14 per share on April 12, 2013.
Silver Wheaton is one of the most lucrative silver stocks that pay dividends. Most
recently, it paid its first quarterly dividend of 2017 of $0.07 per share. The dividend was
equal to 20 percent of the company’s average cash generated by operating activities
over the last four quarters, divided by its outstanding shares at the time the dividend
was approved.

2. Pan American Silver (TSX:PAA,NASDAQ:PAAS)
Founded by Ross Beaty in 1994, Pan American Silver currently has seven mines in
Mexico, Peru, Bolivia and Argentina, plus six development projects in the US, Mexico,
Peru and Argentina. Its 2016 revenues came to $774.8 million, and its silver production
decreased slightly from 26.12 million ounces in 2015 to 25.42 million ounces in 2016.
The highest dividend Pan American has ever paid is $0.125 per share.While that’s
lower than Silver Wheaton’s highest dividend, Pan American was able to pay a dividend
of that amount a noteworthy nine times in a row, with the first time being March 18,
2013 and the last time being March 13, 2015.
The company paid its most recent quarterly dividend on March 10, 2017. The payment
came to $0.025 per share, up from $0.0125 per share in 2016.
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3. Fresnillo (LSE:FRES)
Fresnillo bills itself as the world’s leading primary silver producer. Its precious metals
assets include the largest primary silver mine in the world, as well as an “exceptional
portfolio of development projects and exploration prospects.”
The company pays two dividends per year, and its dividend policy takes business
profitability and underlying earnings growth into account, as well as capital requirements
and cash flow. It paid its 2016 interim dividend of $0.086 on September 9, 2016, and will
pay its final 2016 dividend of $0.215 on May 26, 2017.
4. Tahoe Resources (TSX:THO,NYSE:TAHO)
Tahoe Resources operates the Guatemala-based Escobal mine, which is the third-
largest silver mine in the world. As of December 2016, proven and probable mineral
reserves for the mine sat at 29.1 million tonnes at an average silver grade of 332 g/t
containing 310 million ounces of silver.
On April 6, Tahoe Resources declared its fourth monthly dividend for 2017. It came in at
$0.02 per share and will be paid on April 27. The company has paid the same monthly
dividend since late 2014.
5. Hecla Mining (NYSE:HL)
Hecla Mining is one of the silver stocks that pay dividends. In addition to being the the
largest primary silver producer in the US, Hecla is also an emerging gold producer. It is

the oldest precious metals miner in North America, and owns two primary silver mines
in Alaska, Mexico and Idaho, as well as a Quebec-based gold mine.
Hecla’s most recent quarterly dividend payment came to $0.002 per share on March 2,
2017. Its highest dividend payment on record is $0.0125 per share, last paid on March
25, 2013. The company’s dividends are based on its average realized silver price for the
preceding quarter; it also pays an annual minimum common stock dividend of $0.01 per
share. More details can be found on Hecla’s website.

Silver Price Outlook 2017
What will happen to silver prices in 2017? Analysts predict a
promising year for the precious metal.
Silver prices have been surging in 2016 due
to political concerns and uncertainty
worldwide, including Brexit results and
proposed policies from incoming US
President Trump.
A weak US dollar also favored silver’s price
that averaged $17.32/oz until November,
which was 9.9 percent higher than the same
period in 2015.
Silver hit its lowest price or $13.83/oz at the beginning of the year but then steadily
increased until the end of July, reaching a high of $20.28/oz. The silver market is
expected to be in physical deficit for a fourth consecutive year in 2016 with a total
annual shortfall of 52.2 Moz, the GFMS Silver Institute reports.
What to watch for in 2017
Looking forward to 2017, there are key factors to look at that will affect the price of silver
throughout the year. By the end of 2016 the Federal Reserve interest rate may rise for a
second time in a decade, influencing the US dollar demand. Political developments
worldwide, in particular Trump’s implementation of policies, will have an impact on silver
price as well as the forecast of a higher demand and a tight supply for the precious
metal.
The Federal Reserve interest rate and the US dollar. Interest rates are forecast to go up in
the US due to inflation expectations. After Trump’s election, Janet Yellen, the Federal
Reserve chairwoman, said that interest rates could rise “relatively soon”.
Jim Paulsen, chief investment strategist at Wells Capital Management, told CNBC:
“Everyone thinks the dollar’s going to go higher because the Fed’s going to raise rates.
There have been five major rate hikes during recoveries by the Federal Reserve, and
every one of them resulted in a lower dollar, not a higher dollar.”
Steen Jakobsen, investment chief at Saxo Bank, also said that historically the dollar
often weakens after the US Federal Reserve raises rates as investors sell the currency
after buying it in anticipation of higher rates.

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Political developments and concerns worldwide. Much of this year’s silver price peaks had a
strong correlation with political events in the world. The tight results from Brexit and the
US election were the main drivers of silver prices surging. The uncertainty of Trump’s
upcoming presidency may also change how prices will fluctuate next year.
HSBC analysts forecast a price range of $16 to $21.50 for 2017. “Any resurgence in
investor uncertainty or ‘safe-haven’ demand, possibly based on geopolitical concerns,
will bolster silver in 2017,” they said.
CEO and Chief Investment Officer of US Global Investors, Frank Holmes, recently
said:“At this point we’re digesting this change.The fact is that Trump is going to own the
highest ever level of debt in America. And he’s not afraid of borrowing.
“Inflation is going to be running with his programs if he goes through with a trade war.
And then if interest rates go up too quickly and too high, the housing market basically
implodes. So, the country is in a “big drama” state.”
Strong demand and tight supply. A strong investor demand for silver coins and bars as well
as growth for silver from the jewelry industry will increase demand in the upcoming year.
But the highest demand will come from the solar industry, since the precious metal is a
great conductor of both heat and electricity making it a perfect conductor for solar
panels. The GTM Research and the Solar Energy Industries Association expect
photovoltaic installation to triple between 2015-2020.
However, silver supply will decrease significantly due to a decline in mine production.
HSBC analysts expect a decline of 872 million ounces next year from 887 million this
year, with a total supply deficit of 116 million in 2016 and 132 next year.
The GFMS silver institute also estimates that mine supply peaked in 2015 and will trend
lower in the next years. This decrease in total supply will be a driver of annual deficit in
the silver market in the near future.
Analysts forecast
In a recent interview with Investing News Network, analyst David Morgan said he is
more favorable to a longer consolidation period but that 2017 will definitely see a lift
throughout the year for silver and gold prices.
He suggested that investors should diversify if they are leaning towards the precious
metals, and said: “and then that portion of your portfolio, which I then recommend 10
maybe 20 percent if you are a full-fledged gold or silver bull.”
Speaking about the resource sector in 2017 and after the US election, Sprott US
Holdings’ President and CEO, Rick Rule, said to INN: “If the resource sector that you’re

referring to is primarily precious metals, I think the direction is a little lower first because
there’s a lot of confidence in the economy, and then much higher.”
Similarly, Ed Steer, former analyst at Casey Research and now author of Ed Steer’s
Gold and Silver Digest, said: “How well silver does for the rest of 2016 and in 2017 will
depend upon the paper trading in the Commodity Futures Exchange and that is pretty
much controlled by JPMorgan Chase. But I am an optimist, I am expecting the silver
price to be much higher in 2017 and to be a big year for the precious metals.”
Companies to watch out for
About following companies in the market he said: “I would suggest any new investor to
buy the Global X Silver Miners ETF (SIL), which owns 15 to 20 companies that will keep
up with the research. Instead of following single stocks, let somebody else worry about
it.
“If I had to start from scratch all over again, I would buy that ETF plus a couple of other
things like First Majestic Silver (TSX:FR), because I am the type of guy that buys and
holds, and forgets about it.”
Investor Takeaway for Silver in 2017
It seems that silver will have a promising 2017 reaching higher price peaks than this
year. A rising demand from the solar industry and a lower mine production could make
next year a big one for the precious metal. However, investors should keep an eye on
political developments worldwide as well as interest rates, which are the main factors
that can impact silver’s performance in 2017.

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