Widgetized Section

Go to Admin » Appearance » Widgets » and move Gabfire Widget: Social into that MastheadOverlay zone

Silver is expected to average $38 in Q4, 2011 and rise to $42 by 2012 Q4

Silver prices may rebound from its current bear market which has caused a decline of almost 40%. Silver fell from its May high of near $50 and is currently trading around $30.

Silver prices are expected to gain on the worsening European debt crisis and disappointing growth in developed economies. The Chinese factor will prove crucial as the country is expanding at 5 times US growth and has been a top consumer of silver.

Silver is expected to average $38 in Q4, 2011 and rise to $42 by 2012 Q4, a Bloomberg survey shows. “Prices now look relatively cheap to where they have been recently. The backdrop is still very supportive for Gold and we think thatSilver will leverage off the back of that. Emerging markets are going to be important for demand for sure”, David Wilson, an analyst at Societe Generale was quoted by Bloomberg. David is the most accurate silver forecaster tracked by Bloomberg in the two years through June.

Money flows in to silver have also been bullish. Silver ETP holdings have been steady. The sales of US mint coins touched a yearly record high of 4.46 million ounces in September.

The Silver COT report also signals increasing bullishness. Net short positions by commercials have declined considerably in the past weeks. – Source: commodityonline.com

Posted by on October 24, 2011. Filed under Precious metals. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

You must be logged in to post a comment Login