The Silver Singularity Is Near

Seeking Alpha has published an article on silver and the supply and demand factors that effect it. Click on the link to read the full story:

For the past decades, governments have been selling their silver stockpiles into the markets, thus adding to supply. These stockpiles are basically depleted and governments are likely to become net buyers of silver.

Photographic demand, which has been decreasing for the past decade is becoming a less significant part of demand and will soon cease to be a driver of silver demand trends. Also, as most photographic silver is recycled, photographic use approaching zero means less recycling supply moving forward.

Similarly, A steady decline in silverware demand is also reaching its lower bounds and at some point will cease to be a negative driver of silver demand trends.

According to the Silver Institute, during silver's bull market from 2001 to 2010, mine supply increased by an average of 2.2% per year, from 606 to 736 million ounces. However, demand from industrial uses (from which the majority of silver cannot be recycled at anywhere near today's price) increased 3.7% per year from 350 to 487 million ounces.

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