By Laurence Iliff, Of DOW JONES NEWSWIRES
MEXICO CITY -(Dow Jones)- Fresnillo PLC (FRES.LN) Chief Executive Jaime Lomelin said Wednesday that the world's biggest primary silver producer sees strong demand and solid prices even if global economic fears subside and silver's use as an investment hedge slows.
"Even if this entire problem of global worries over inflation and economic development were to disappear and economies began to bloom, we think that silver would stay at a good price thanks to its applications," Lomelin said at a meeting with reporters. "If at any given moment there was a lot of euphoria in the world economy, there would be greater consumption of industrial silver."
He pointed to all kinds of electronic devices that use silver as a conductor, along with growing interest in countries such as China in renewable energy sources like solar applications.
And just as demand is likely to remain strong, supply will continue to be limited because the growth in new mines capacity has lagged, Lomelin said, adding that most silver comes as a byproduct of copper, zinc and lead...
Read more @ ORIGINAL SOURCE
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