The silver market is expected to be in an annual physical deficit of 52.2Moz in 2016, marking the fourth consecutive year in which the market has realized an annual physical shortfall. While such deficits do not necessarily influence prices in the near term, multiple years of annual deficits can begin to apply upward pressure to prices in subsequent periods. This year, an expected 71.4Moz net inflow into ETP holdings and a 61.9 Moz derivatives exchange inventory build on a year-to-date basis (end-October) have increased the impact of the physical deficit, bringing the net balance to -185.5Moz, equivalent to approximately nine weeks of global demand. Above ground stocks, including ETP’s and exchange inventories, are estimated to reach 2,640.1 Moz in 2016; a 15% increase from the previous year.