Investment and Industrial Demand Leading to Higher Silver Prices

29 March 2011  The Financial Times

Mr Brebner of Deutsche Bank is expecting silver to average a record $50 a troy ounce next year, compared with current prices of $37. Others are even more bullish, calling for the ratio of gold to silver prices to fall in line with the relative abundance of the two metals in the earth’s crust – about 19:1 – or for silver to surpass its inflation-adjusted high of 1980, which stands at about $150.

For the time being, at least, the silver bugs are making more noise than their detractors.

On a recent call to discuss the results of Pan American Silver, the fourth-largest miner, one private investor’s comment was less a question than a rallying call: “With the entire United States of America, the states going bankrupt, which means they’ll have to unleash . . . QE3 because the Federal Reserve will not allow them to go [bankrupt], and [with] silver [above] $35, the sky is the limit.”

 

http://www.ft.com/cms/s/0/fe701e4e-5a1f-11e0-86d3-00144feab49a.html#axzz1I0okru5b