Silver expected to reach $50 in 2012 says Bill Hionas
As we all know, the white metal soared earlier this year only to fall dramatically in the spring. However, silver rebounded and has been holding its ground ever since, while volatility raged around it.
Jewelry demand remains high, possibly due to the higher price of gold, and demand for silver coins is also rising noticeably. Industrial demand for silver is likely to increase by at least 4% in 2011, going into 2012. However, it will be investment demand that will likely drive up the price of silver in 2012. The same macroeconomic factors that impact on gold, also affect silver. As ‘poor man’s gold’ silver offers a more accessible entry point into precious metals investment.
Silver both benefits and suffers from its dependency on both industrial and investment demand. If the economy is strong, then industrial demand rises, if there is economic turmoil, then industrial demand may fall but silver is seen as a safe haven. However, while the economies of the US and Europe may be in trouble, there are emerging markets in Asia where growth is healthy and this boosts both industrial and physical demand for silver.
“It is possible that silver could outperform gold next year,” says Bill Hionas. “Gold has dominated the headlines since silver’s dramatic fall in April but silver has been holding its own for some time now and many market experts feel it will take off in 2012.”
About Bill Hionas:
Bill Hionas is CEO of Pan American Metals of Miami, LLC, a group of traders, investors and account executives that combines many years of experience to help clients invest in bullion. PAMM provides an individual investment service and is based in Miami, Florida for convenient access to both North and South American investors.
- Silver To Average Lower Price In 2013 Than In 2012 But Demand For Silver Coins Is Soaring Globally: Silver Institute - April 25th, 2013
- Silver Could Reclaim $30/Oz In 2013 - Thomson Reuters GFMS - April 25th, 2013
- China Silver imports decline in March 25% y/y to 195.98 tons: Barclays - April 24th, 2013
- India, China governments cling to Silver stocks with no sales in 2012 - April 24th, 2013
- Silver demand seen rising in 2013 on industries, investment-GFMS - April 24th, 2013
- Silver coin investment demand in China surges industrial demand in India too - April 24th, 2013
- Silver prices may average $26 oz in 2013 and $24 oz 2014: Barclays - April 23rd, 2013
- Deutsche Bank cut 2013 silver price outlook by 16.5 percent to $31 an ounce - April 18th, 2013