Investment Demand Seen Driving Silver in 2012
Posted by Investment Rarities on December 9th 2011 in Bailout, CFTC, Federal Reserve, Gary Gensler, Gold, Goldman Sachs, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!
Predicting that “silver could rise from $33 to $50 an ounce next year,” a Money Morning article argues that the price will be driven up by a continuation of 2011′s increased investment demand: “We are rewriting the rules by turning silver into an investor’s metal. Instead of the price being a measure of its value in manufacturing, the silver price is becoming a measure of how big a mess the global financial system becomes.”
More conservatively, HSBC sees an average price of $34 an ounce in 2012, with the company’s head of precious metals research, James Steel, saying that “Silver prices will reflect the interplay of many factors. The single biggest bullish factor, in our view, will be renewed investment demand.” More on Steel’s outlook for 2012 in an interview with The Street.
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