Slide 1: The Silver Market in 2010
The Silver Market in 2010 Pan American PAAS: NASDAQ SILVER CORP. PAA: TSX
Slide 2: The Silver Market 2010
The Silver Market 2010 (Dec 30 $30.70/oz) (Jan 4 $17.17/oz) • The average silver price in 2010 was $20.19 per ounce • The price of silver increased 78% between January and December 2010 • In comparison, the price of gold increased 25% in 2010 2
Slide 3: The Silver Market 2010
The Silver Market 2010 World Silver World Silver Demand 6 Supply %4% 17% 20% 10% 46% 4% 70% 16% Mine Production Scrap Hedging Industrial Applications 7% Photography Jewelry Government Sales Silverware Coins & Medals Net Investment Total supply 1,057 Moz Total demand 1,057 Moz • Mine production up 2%
Slide 4: The Silver Market 2010: Supply and Demand
The Silver Market 2010 Supply • Total silver supply increased 14.6% in 2010, but mine supply rose only 2% • Net producer hedging soared to 61 Moz on strong prices • Largest mine production increases seen in Mexico, China and Australia; conversely, largest decline seen in Peru • Mexico and Peru large
Slide 5: ETF Silver Holdings
ETF Silver Holdings • Combined silver ETF holdings finished 2010 at 583 million ounces • Silver ETFs holdings grew approximately 25% or 115 million ounces during 2010 • Total ETF holdings were valued at approximately $17.8 billion at year- end 5
Slide 6: 2011 Silver Market (GFMS' Outlook)
2011 Silver Market (GFMS’ Outlook) • Mine production expected to increase (mainly in Mexico) to ~790 Moz • Net producer hedging and scrap supply likely to remain strong on higher prices • Overall supply expected to rise ~3% • Industrial demand expected to slow after 2010’s strong growth • Total fabr