Demand for silver futures is beginning to rise again as supply of the volatile metal is starting to slip, SilverSeek.com reports.
The preciouse metal's availability on the Comex has fallen 38 percent to 29 million since 2011 began. Meanwhile, the amount available for Comex clients has increased 23 percent to 72 million ounces, which foments bullish circumstances for silver futures as supply falls and demand rises.
"A 10 percent downside correction now looks more likely than a 10 percent rebound," states a report by analyst Edel Tully, a London-based UBS analyst. "While we think another shot at $50 is very possible later this year, for now the risk-reward doesn't seem worth it."
At 10:49 a.m. on Wednesday, silver futures gained 1.31 percent, a 46.4 cent rise to $35.875 per troy ounce.
Exchange traded silver products slipped 197.1 metric tons on Tuesday to 13,605.1 metric tons, Bloomberg reports. Not since September has this supply been as low.
The record price for silver futures is $50.35 per troy ounce, which was set in January 1980. The precious metal was within $1 of surpassing that record price in late April, but it rapidly dove in value in early May.
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