The Federal Reserve's pledge this week to keep U.S. interest rates at rock-bottom levels for a number of years and its hints of fresh monetary easing are set to fuel further gains in silver, keeping the opportunity cost of holding silver low and the dollar in check.
Investors remain shy of the white metal, which is used in electronics manufacturing and jewelry, after prices slumped by a third in the five sessions after they hit record highs last spring.
"Silver's violent price moves last year have undermined its investor appeal for the time being, The market needs fresh catalysts to encourage more participation."
"We still do not rule out another stab at $50 an ounce. Given our expectation for gold to make new highs in the coming year, we could very well see silver enjoying some spillover benefits. But for this to happen, silver needs to rebuild its investor base," she added.
"With 50 percent of overall demand accounted for by industrial applications, this could be a drag on silver's performance." Silver mine supply has also hit record levels in recent years.
In 2013, i see silver prices rising to $35 an ounce, up on their expectations for this year but still well below last year's record high of $49.51 an ounce. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
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