In order for silver to break out of its current trading range, investment demand needs to return to buffer industrial demand, said Michael Steinmann, CEO of Pan American Silver.
“Silver is a very important metal for the future, and right now, if you look at electronics, if you look at cars…but investment demand has to be there in order to bring it back to new peaks,” Steinmann told Kitco News on the sidelines of the PDAC 2018. Steinmann noted that 60% of all silver produced annually is used for industrial applications, but this alone is not enough to move silver prices. “It’s the investment demand that moves the price,” Steinmann said. “The industrial applications put the floor on it, I would say maybe $14 to $15 [an ounce], but the peaks will come with investment.” Steinmann said that over the next few years, he expects to see new peaks in silver prices.