Silver prices could rise to $45 an ounce in 2012, GFMS says

The average price of silver could rise to $45 an ounce in 2012, from $35.66 this year, as investment demand is expected to support it, said metals consultancy GFMS, a unit of Thomson Reuters.

“The main driver of the price remains investment demand, which has absorbed the substantial market surplus…that has characterized the silver market in 2011,” GFMS said.

World investment demand for silver, including coins and metals, is expected to reach 278 million ounces this year, its second highest volume after 2010. Further gains are expected for 2012, it also said.

The global fabrication demand for silver is forecast to grow 4 percent in 2011, supported by rising industrial demand despite weaker global economic backdrop, it also said.

Spot silver inched up 0.2 percent to $33.74 an ounce, down 32 percent from a record high of $49.51 hit in late April, but still up 9.3 percent so far this year.

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Posted by Silver Guru on Nov 17 2011. Filed under Silver Analysis, Silver prices. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry