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Silver prices expected to reach new highs in 2013

Despite the recent weakness in precious metals, the longer-term outlook for gold and silver remains bright, according to BNP Paribas.

In a note to clients published this morning, precious metals strategist Anne-Laure Tremblay wrote that “The correction in precious metal prices, and particularly in gold and silver, was initially triggered by Bernanke’s semi-annual testimony to Congress, in which he made no specific references to QE3. Sentiment towards gold was hit by more elusive timing of QE and the confirmation of a more positive economic outlook in the latest FOMC minutes.”

Tremblay went on to say that “Beyond the short term, we remain positive on gold’s outlook as the fundamentals are still solid. These include high liquidity, low interest rates and sovereign debt concerns. An improving macroeconomic outlook and high risk appetite should see silver outperform gold for most of H2’12 and 2013 although silver, like gold, remains vulnerable to waves of liquidation. As a result, the gold/silver ratio should decline to the low 40s by H2’13.”

In light of the above, Tremblay maintained her 2012 and 2013 gold price targets of $1,850 and $2,225 per ounce, respectively.  As for silver, her 2012 estimate of $37.50 remained the same, while she lowered her 2013 target from $52.00 to $51.00 per ounce. – GoldAlert

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Posted by on Mar 21 2012. 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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