Silver to recover faster than Gold from present slump (Bullionstreet)

Silver could come back anytime even though it is in the same sinking boat with gold at the moment, analysts said.

The white metal dropped 0.6 percent in the first week of March and is down 5.8 percent so far this year, which is approximately 42.3% from its high 22 months ago.However, the silver price outlook still remains bright, according to the forecasts of major financial and investment firms.

According to Swiss America Trading Corporation, 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 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 also signaled improvement ahead stating the firm was keeping its three month target for silver at $37 per ounce.



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’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.

Central banks of countries classified as emerging markets are the biggest official silver buyers for the past year. In 2013, the overall net central banks' purchases were the largest since 1964
Analysts however added that recent scenario might not have helped the white metal as global economy demonstrates slightly improving growth patterns recently and this drives silver prices down continuously with a steady pace.