silver-bad news=good news?

  1. 5,382 Posts.
    Please read this short story. When I first read it I thought it was bad for silver, then I read it again and believe its actually very bullish. This article will be covered in Ted Butlers next newsletter.

    Shanghai, July 7 (Dow Jones) - China's silver exports in 2003 are expected
    to reach at least 2,100 metric tons as steady gains for spot silver prices in
    global markets will encourage more exports in the second half of this year, an
    executive with a Beijing-based think-tank said Monday.
    Tang Wujun, vice general manager of semi-official think-tank Beijing
    Antaike Information Development Co., predicted that the upward trend in spot
    silver would last through the rest of this year if a global economic recovery
    took place.
    Although spot silver has fallen from around $5.10 a troy ounce in mid-
    2002, it has been posting slight but steady gains recently.
    It was quoted at $4.67-$4.69/oz at 0700 GMT in London Monday, up slightly
    from $4.48-$4.52/oz quoted a month ago.
    Furthermore, "our silver production each year is pretty much larger than
    our consumption...Therefore, we have to seek overseas buyers to digest our
    large supply," Tang told Dow Jones Newswires on the sidelines of the China
    Silver Forum in Shanghai.
    China is expected to produce a total of 2,400 tons of silver metal from
    silver ores as well as slightly over 2,000 tons of silver metal from recycled
    metal scrap, according to Tang.
    The country's silver consumption is pegged at only 1,800 tons in 2003.
    Although this represents an increase of 10% from last year, it is still much
    lower than total output this year.
    In order to reduce the severe oversupply of silver, the Chinese government
    was likely to sell less state reserves to the public this year, sources close
    to the government said.
    Last year, the government sold 1,600 tons of silver from its reserves,
    making it the world's largest seller of silver.
    China Bureau, Dow Jones Newswires, (86-21) 6218-3268
    [email protected]

    Copyright 2003 OsterDowJones Commodity News (ODJ). All rights reserved.

    2003-07-07 11:25:09 UTC
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.