$50 Silver Bullion Predicted for 2012 - 17 November 2011
THE PRICE of an ounce of Silver Bullion will exceed $50 by the end of next year, a leading precious metals consultancy has forecast.
"We expect to see silver's bull run continue," says the Interim Silver Market Review from Thomson Reuters GFMS – whose base case is for Silver Prices to average over $45 per ounce during 2012.
Silver investment is predicted to be a key driver of higher prices. GFMS forecasts that silver investment – which includes Silver Bullion coins and medals – will reach 8600 tonnes (278 million ounces) for 2011.
"Although this represents a slight fall in ounces from 2010, it will set a new record high in value terms," says GFMS.
"Further gains are projected for 2012."
Minting of Silver Bullion coins is expected to rise by around 25% this year.
"Investors activity underpinned silver's moves this year, which saw it rally up to $50 in April before correcting sharply in both May and late September," says GFMS.
"The main factors driving these price moves were those impacting gold, namely the Eurozone sovereign debt crisis, inflationary fears, loose monetary policies and a weak US Dollar."