Gold takes abrupt turn to the downside on Russian de-escalation
Silver Institute forecasts record demand for the white metal in 2022

(USAGOLD – 2/15/2022) – Gold took an abrupt turn to the downside in overnight trading on reports of a possible Russian de-escalation on Ukraine’s border. It is down $22 at $1851. Silver is down 56¢ at $23.35. Unigestion’s Olivier Marciot put his finger on what might have prompted this morning’s strong, across-the-board market reaction. “The Russia-Ukraine situation,” he told Financial Times, “is coming at an inopportune time when markets were already fragile. Markets are therefore being very reactive to any incremental piece of news that comes out.”

The Silver Institute sees silver demand reaching a record high in 2022 of 1.112 billion ounces driven by a 5% gain in industrial applications, a 13% gain in retail investment demand (silver bar and coin purchases), an 11% in jewelry, and 21% gain in silverware. “Silver physical investment should enjoy double-digit gains in 2022 to hit a seven-year high,” says SI in its annual assessment released last week. “As the year advances, ongoing macroeconomic uncertainties, and elevated inflationary pressure, should encourage retail investors to seek physical silver for wealth preservation. Accordingly, profit-taking is likely to remain muted. Physical silver investment in India is also expected to strengthen on the back of improving economic conditions and positive price expectations.”