Citi warns on silver

For the bull run (up 11% YTD) to continue, says the Citi team, significant investor interest in the form of ETF and physical bar holdings will be needed to offset muted industrial demand and "largely price-inelastic mine supply expansion." Strong demand in 2013 - including record sales of U.S. Silver Eagle coins - was bargain hunting amid diving prices, says the team. "We very much doubt that bullish market sentiment is sustainable due to weakening fundamentals and forecast prices to average $20.40/oz. this year."

As for industrial use, keep an eye on demand from China's solar industry. Net Chinese silver imports fell 37% Y/Y, at least in part due to solar consolidation there and significant volumes of excess capacity being closed. Citi is forecasting additional declines this year along with rising exports, meaning investors will need to absorb an even higher volume of the metal.


From other sites
Comments (19)
  • stan33man
    , contributor
    Comments (159) | Send Message
    As with Goldman, et al, one must take Citi's comments with a grain of salt and a skeptical eye.
    3 Mar 2014, 04:18 PM Reply Like
  • Russ55
    , contributor
    Comments (3) | Send Message
    I'm going to continue to invest in physical silver as long as it holds below $25 an oz!! Not repeat NOT going to be purchasing paper silver anytime soon, regardless of what the market does!!
    4 Mar 2014, 01:39 AM Reply Like
    , contributor
    Comments (20) | Send Message
    Thats is the Truth !
    3 Mar 2014, 04:19 PM Reply Like
  • garrylindsay
    , contributor
    Comments (34) | Send Message
    Citi wants what they hope you will sell to them at lower prices
    3 Mar 2014, 04:46 PM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (2087) | Send Message
    Always silver demand is fairly steady, industrially speaking, of course in the middle of a depression, or serious recession, it may fall off. But, mainly we use silver and love to buy it.
    I wouldn't give much weight to anyone saying silver is not fun anymore.
    I made a comment about Morgan fooling with the trades, and I say, 'ditto' here.
    Capt. Brian
    The Lost Navigator
    3 Mar 2014, 04:53 PM Reply Like
  • apberusdisvet
    , contributor
    Comments (3110) | Send Message
    It's comforting to see that the financial propaganda of the investment banks and their puppets in the MSM is now recognized so easily; especially regarding the world's most strategically important metal that has a instantaneously recognized value, and is in extremely short supply on a global basis.
    3 Mar 2014, 04:55 PM Reply Like
  • droz1115
    , contributor
    Comments (71) | Send Message


    Best comment on here!
    Yes! I'm glad more people are beginning to see it for what it is too. They steer you WAY of course. Do your own research and take everyone's opinions into account, but don't just get your sources off the TV!
    4 Mar 2014, 02:58 AM Reply Like
  • mooserocky
    , contributor
    Comments (27) | Send Message
    3 Mar 2014, 05:06 PM Reply Like
  • rubber duck
    , contributor
    Comments (194) | Send Message
    Thanks for the advice Citi. Quick question, I know GS refers to their clients as "muppets", what do you guys call yours?
    3 Mar 2014, 05:26 PM Reply Like
  • garrylindsay
    , contributor
    Comments (34) | Send Message
    3 Mar 2014, 05:30 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11388) | Send Message
    Citi is wrong:







    3 Mar 2014, 05:49 PM Reply Like
  • angelg44
    , contributor
    Comments (13) | Send Message
    I do exactly the opposite of whatever banksters announce via press releases like this one. Means buy when they say sell and vice-versa.


    It is almost funny how transparent are their misleading statements these days and in recent times.


    What about silver hitting $100/oz this year in case political instability gets worse? Better chance than going back to $15. My coin to that.
    3 Mar 2014, 05:58 PM Reply Like
  • $lik $ilver
    , contributor
    Comments (290) | Send Message
    Almost sounds like a scare tactic/hard sell for their ETF products while also attempting to cover a misguided short position too.
    3 Mar 2014, 06:01 PM Reply Like
  • Arion
    , contributor
    Comments (18) | Send Message
    Anytime City recommends one thing do the opposite and take physical delivery.
    3 Mar 2014, 06:08 PM Reply Like
  • satzclock
    , contributor
    Comments (101) | Send Message
    So with record numbers of silver producers and explorers going up in smoke mining supply is increasing? With heavy short positions and all of the spec longs gone from the futures we will have heavy selling? Likely whatever silvers price is in June-July, we will never see it that low again.


    The big banks can't rig markets enough for their satisfaction.
    3 Mar 2014, 06:10 PM Reply Like
  • Brian58
    , contributor
    Comments (330) | Send Message
    I sense a bit of desperation outta of the banks that are caught net short and need to get out of they're position. They got greedy and now are trapped. Glad to see so many people (including myself) seeing right thru their agenda. Buy all the dips.
    3 Mar 2014, 06:16 PM Reply Like
  • user 101
    , contributor
    Comments (690) | Send Message
    Why the hell is it going to decline?? I'll tell you why! Because they are the ones shorting the shit out of it!
    3 Mar 2014, 08:57 PM Reply Like
  • mkjets03
    , contributor
    Comments (6) | Send Message
    Along with all the other good points made in the posts above mine, this article totally neglects the demand coming out of India. Jewelry demand is buoyed by gold suppression and industrial demand will go way up due to the major solar power plant being built in northern India. That plant alone will suck up 70 million ounces of silver to build and 20 million ounces to maintain.
    3 Mar 2014, 11:27 PM Reply Like
  • 6151621
    , contributor
    Comments (1172) | Send Message
    Citi Muppets or Cattle or Sheep follow closely?! I'll make my own calls but thanks for the heads up, Citi.
    4 Mar 2014, 09:39 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs