Show FUTURE SILVER MARKETS visualized silver like many other things appears to suffer pronounced disadvantages in the hands of modern specialists says the editor of the financial review of new york the metal specialists know all about production and costs but apparently ignore the larger factor of its monetary position I 1 many of the experts of currency and credit know its needs but fail to examine total commercial requirements and production it is therefore not surprising that the metal experts should form pessimistic conclusions commodity markets invariably exhibit saturation levels and silver as a commodity would naturally be expected to exhibit the same developments the editor of one of the technical mining publications is so concerned over this same apparently inevitable result next year that he proposes limitation of production so that fairly high prices can be maintained however the silver market is not so formidable or mysterious that the ordinary lay mind cannot accept the conc conclusions fusions of these specialists and form a fairly accurate picture of the real situation production for the past 7 years has been around ounces and total coinage z leaving a balance of ODO ounces for other requirements op consumption in this period by china and india for other than coinage amounts to about OW ounces the balance of other requirements is assignable to the total commercial demands of the rest of the world of which this country and great britain used ounces in the jewelry and photographic trades A total of about ounces has been used to meet this deficiency between production and consumption through the melting down of silver currency and other silver reserves in europe for the last seven years and also in former german african possessions in the past WO two years production may be expected to continue but large supplies obtained through the destruction of silver currencies is obviously no longer possible the current year probably marks the turning point when new production will be of vital importance the new russian state bank in two months has accumulated a precious metal reserve against its new standardized bank notes of rubles which is understood to be largely silver in germany silveris silver is becoming a medium for investment funds and the extent of this demand is shown in the fact that the price of silver in germany lately has exceeded the london market price in the past pact several weeks deposits of silver in the state bank of germany has increased from to the indicated consumption by china and india this year is about ou ounces aces against last year about actually shipped in the first 8 months and the prewar pre war yearly averages of ounces the fact that living costs have advanced from to per cent in both countries should have attracted the attention of experts on this subject indicated higher costs will obviously increase this demand if as is estimated now world production this year amounts to ODO ounces the requirements of the far east and the pittman order in this country will amount to ounces the balance of ounces would probably be less than total commercial needs of great britain and this country the total demand other than those already mentioned may in the case of russia alone exceed even world production the consumption in germany now that there is actual consumption where during the past three years it was the largest source of melted down silver currency supplies is just as significant the record so far is that those countries that have experienced the greatest severities in currency depreciation russia and germany have returned to the use of silver i t at the conclusion of the world war it was the dominant opinion of the best minds that europe would immediately seek to restore badly disrupted credit and currency conditions what europe did was to actually increase this burden double fold even at the beginning of the fifth year after the war there is no positive assurance that europe has finally decided to meet these practically inevitable problems but we are sure of one thing that the more unfortunate nations germany austria and russia cannot be depended upon to feed the london silver market against a silver reserve that amounted to at the beginning of 1914 what france may do is interesting since her badly demoralized franc appears to need substantial support a function silver performed in the prewar pre war days when silver reserves of the bank of france were rather than the of the present time the only important menace is great britain its position on both silver and gold is critical does it seek to accumulate more trouble or does it desire a more peaceful future |