Gold hit another all-time high over night ($2,954.94/oz). Gold is now trading at $2936.66, up $3.72. Silver is trading at $32.99, up 28 cents. The recent report, Price Sensitivity of Above-Ground Silver Stocks, by the Silver Institute analyzes the price sensitivity of above-ground silver stocks, which include both bullion and fabricated products. The study estimates that total above-ground silver stocks reached 19.3 billion ounces by the end of 2023, with 8.1 billion ounces in bullion form and 11.3 billion ounces in fabricated products. The report finds no strong correlation between the overall level of above-ground stocks and silver prices. However, it notes that movements in bullion stocks have a significant impact on silver prices and vice versa. The analysis reveals that increases in bullion stocks are often positively correlated with price increases, as investment demand grows when silver prices rise, further stimulating higher prices.
The report also examines the price sensitivity of fabricated product stocks and scrap recycling. It concludes that above-ground stocks of fabricated products are generally less price-sensitive than bullion stocks. The level of scrap recycling is only partly related to silver prices, with product life cycle considerations and environmental legislation also playing important roles. The study notes that typically, large price changes are required to bring about material increases or decreases in scrap recycling. Since the mid-1980s, changes in scrap recycling have been impacted more by shifts in the composition of fabrication demand than by the overall level of above-ground fabricated stocks or silver prices.
