During the past week, price of silver dropped by 0.6%, from $28.76 to $28.58 per ounce. The white metal trades 5.8% lower in 2013. That is down by approximately 42.3% from its high 22 months ago. More or less, it seems that silver is in the same sinking boat that is gold at present.
It is a well-known fact than monetary easing policies are precious metals’ best friends. Therefore, some investors got scared that the US Federal Reserve might end or scale back its quantitative easing program.
In addition, the global economy demonstrates slightly improving growth patterns recently. The positive economic data drives silver prices down continuously with a steady pace.
However, the silver price outlook still remains bright, according to the forecasts of major financial and investment firms.
Swiss America Trading Corp
According to the expectations of the investment firm, silver will keep its robust investment rate. A massive demand is expected to lead to an oversold moment. And when that time comes, there will be a great number of investors ready to pour money into the white metal. Swiss American believes that at the very moment silver is being oversold more than in the past decade. In respect, prices are projected go grow in relation to the supply shortage and rising industrial demand.
Morgan Stanley
Global financial services firm and a market leader in securities, asset management and credit services, Morgan Stanley sees the white metal averaging to $35 per ounce next year. According to its analysts, silver is gold’s cheaper proxy. Therefore Morgan Stanley expects the metal to outperform gold in 2013.
UBS
The financial service firm also signaled improvement ahead stating the firm was keeping its three month target for silver at $37 per ounce.
HSBC
Recently HSBC boosted its 2013 silver forecast to $33 and its 2014 silver forecast to $31 per ounce. The change was attributed to four factors: stronger industrial demand, steady investment appetite, strong coin and bar purchases and a bottoming out of jewelry demand.
Deutsche Bank
Deutsche Bank’s analysts project that industrial uses of silver will keep the commodity supported as the global economy turns around. Although,the bank’s revised it gold and silver forecasts, still sees higher silver prices ahead. The latest outlook on the value of silver in 2013 was revised by 16.8% to 37 dollars per troy ounce.
