Industrial demand for silver likely to pick up in.

[Ardent Listener]

(Kitco News) - Barclays Capital looks for industrial demand for silver to pick up in the coming years. “We believe total silver fabrication demand is set to reach record levels by 2015, even if consumption from the solar industry slows, as demand for silver in industrial usages--particularly from emerging markets--remains strong,” Barclays says. Solar-panel demand has been heralded as a “vast growth opportunity for silver,” although Barclays doubts it will be a “game changer” for the silver market without government subsidies or lower costs. Still, says the bank, “we do expect prices to find greater direction from industrial demand amid an improved macro backdrop.” The industrial portion of silver demand has already risen from just under 40% to over half in the last 10 years, Barclays says. The bank says silver’s unique properties make it an “ideal candidate” for many industrial usages, given that it is ductile and malleable and pure silver has the highest electrical and thermal conductivity, but also the lowest contact resistance.

By Allen Sykora of Kitco News; asykora@kitco.com