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Silver expected to reach an annual average of over $45 per ounce in 2012 – Reuters

Silver’s rally is expected to extend into next year, reaching an annual average of over $45 per ounce in 2012, according to a Thomson Reuters GFMS Interim Silver Market Review.

The interim review was highlighted Wednesday night at the annual New York Silver Dinner organized by The Silver Institute. It was presented by Philip Klapwijk, global head of metal analytics at Thomson Reuters GFMS. The review forecasts the annual average silver price in 2011 at $35.66, up by 77 percent year-on-year.

The main driver of the price remains investment demand, which has absorbed the substantial market surplus that has characterized the Silver market in 2011, the report said. In 2012, “the resultant silver market surplus is expected to once again be absorbed by investors as the investment case for silver remains in play,” Thomson Reuters GFMS said in the report.

The report cautions, however, that downside risks remain, including the potential for the sovereign debt crisis to precipitate a liquidity crunch, impacting the “real economy.” – Kitco

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Posted by on Nov 27 2011. Filed under Silver Analysis. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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