The annual silver price, led by continued strong investor and industrial applications demand, averaged an impressive $13.38 in 2007. This result represented a 16% price increase over 2006, and on a percentage basis was stronger than that enjoyed by gold, platinum and palladium last year. When looking at the 2007 silver price, the white metal posted a very solid performance to averages not seen since 1980. A key development in silver’s recent fortune has been the pronounced shift in investor behavior, witnessed by the continued presence of investors on the demand side of the equation since 2004.

During the first half of 2008, investors drove the silver price up above the $20/oz mark (a high of $20.92 oz was recorded in March) against a backdrop of generally firm fabrication demand. The second half of 2008 was a different story as the economic outlook deteriorated rapidly, and silver, as well as other metal prices, slumped. However, silver’s price in the first third of 2009 recovered a good part of the lost ground.

Silver posted an average price of $14.67 in 2009, the second highest average since the high reached in 1980. Strong gains in investment and a recovery in demand later in the year, were the prime reasons for the 53% intra-year rise.

Silver posted an average price of $20.19 in 2010, a level only surpassed in 1980, and a marked increase over the $14.67 average price in 2009.

Strong silver investment in 2011 paved the way to a record annual average silver price in a year marked by steep price volatility while retail silver investment demand for both physical bullion bars and coins & medals surged to record levels. Silver posted an annual average price of $35.12 in 2011, more than double the $14.67 annual average price achieved in 2009. This offers further testament to investors’ enthusiasm for the metal as silver World Investment (including implied net investment, silver bars and coins & medals) produced another historic high total last year of 282.2 million ounces (Moz), the equivalent of approximately $10 billion on a net basis, itself a record high.