Silver
Watch out for the Silver Rush as price’s may double by year end.
Those who rush to buy gold should not neglect silver. If the present trend continues silver will be the metal people should be watching. According to experts, silver prices will go up faster than gold rates in the coming months due to increased demand and a shortage in supply. The world’s largest mining conference in Toronto was recently told by experts that Silver prices are poised to outperform Gold while moving dramatically higher later this year due to increasing investment demand.
Speaking at the Prospectors and Developers of Canada Association (PDAC) annual convention, German investment fund manager Oliver Frank told the media that silver will likely end the year around $25 per ounce. This bold projection is almost double current silver prices. The reason for this unprecedented surge is a late surge in pent-up buying demand, particularly among Europeans.
Some market experts are predicting that the heightened global investment demand will also help Gold to breach the hallowed $1,500 mark by year’s end — an appreciation of about 60% over its March 2005 spot price close. Silver’s recent price , like Gold’s has been pretty volatile recently due to the market pressures previously mentioned , our view is that Silver will perform better on a percentage basis from here on & could also benefit as Gold steps out of the affordability range for the average investor.
Furthermore taking into account its many Industrial components ; Copper , long considered the barometer of changes in the world economy is giving signals of an imminent broad based rally in Commodities . Despite all the recent negative news relating to the slowdown in the global market , Copper has been looking increasingly resilient in recent weeks , up over 20% for the year & this news should bode very well for precious metals . Silver is also likely to continue to benefit from significant Exchange Traded Funds Inflow into the market , which is severely increasing the Global demand for this Precious Metal.
Technically Silver’s moving averages are heading higher & the RSI are also pointing higher after bouncing off the 50 line . This market certainly has substantial room to head higher given the uncertainty enveloping the global markets, however Silver could be vulnerable to a pullback in the unlikely event that the US dollar strengthens even further & the Oil price continues to fall .
