In a Thomson Reuters GFMS report released Tuesday on behalf of the Silver Institute, Andrew Leyland, GFMS' precious metals demand manager, makes a number of unsavory silver market predictions. First and foremost, he notes that though physical demand for the white metal has surged this quarter, that is "not enough to offset a weaker Q1-Q3." As a result, he sees total physical demand sinking by 6.7 percent in 2014. Furthermore, he places the 2014 average silver price at $19 per ounce, down 20 percent from the 2013 average of $23.79. Market watchers have been quick to react negatively to those numbers, but not all aspects of the report are bad. For instance, Leyland also points out that:
- Demand for jewelry is set to "rebound strongly in 2015" despite sinking in 2014.
- Mine supply is likely to peak in the next few years. That's especially interesting given that silver supply from secondary sources is expected to "remain under pressure" — though it comprised 25 percent of total supply in 2012, it's set to come in at 16 percent this year.
- Speculative interest in the metal is still at "healthy levels." As a result, silver could benefit from index reweighting in the first quarter of 2015.
A few silver-focused companies listed on the NYSEMKT also saw some fairly impressive gains.Great Panther Silver (NYSEMKT:GPL): Mining and exploration company Great Panther Silver is up 11.57 percent over the last five days. It is currently mining precious metals at three mines in Mexico; encouragingly, it's up 16.44 percent year-to-date.MAG Silver (NYSEMKT:MVG): Up 6.43 percent in the last five days, MAG Silver is the only company listed here that is not yet producing silver. That said, its website notes that it is in the midst of advancing two "significant projects" within the Mexico Silver Belt. MAG is up an impressive 41.47 percent since January.Coupled with the above positive points from the GFMS report, these gains indicate that while it may be tempting to look negatively upon silver, there are certainly pockets of positivity to be found. Until the market reaches a turnaround, investors might do well to focus on those bright spots. Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article. Related reading: Coeur Mining: "Hang on for the Run Ups" in the Silver Price Which Silver Companies Have Gained in the Last 5 Days? from Silver Investing News