HANDY AND HARMAN SEES SUFFICIENT SILVER SUPPLIES
World stocks of silver are large
enough to accommodate any changes in the supply-demand equation
this year, with industrial consumption expected to again exceed
mine production, the dealer house Handy and Harman said in its
annual review of the silver market.
    The house estimated that the industry last year withdrew
20,000,000 ounces of silver from stocks to bridge a supply
deficit caused by a consumption rate of 403,000,000 ounces and
production level of 382,000,000 ounces.
    However, world stocks are huge, totaling 2,267,900,000
ounces at the end of 1986, it said.
    The review noted that world industrial consumption has been
on an uptrend since 1980, although offtake is still 14 pct
below the 1978 level of 442,000,000 ounces.
    Handy and Harman said 22,800,000 ounces of silver were used
to produce coins last year, up from 12,700,000 ounces in 1985,
with the demand getting a big boost from the production of U.S.
coins, including the American Eagle.
    It also said that in recent years Communist countries have
increased their silver imports and estimated that China and
East Germany alone took in 70,000,000 ounces of foreign silver
in the last five years.
 Reuter
