Stoughton, WI -- (SBWIRE) -- 01/28/2013 -- The world's most respected precious metals consultancy, Thompson Reuters GFMS, came out last month with its 2013 forecast for silver prices. Following being bearish on silver prices over the previous few years, GFMS has come about and predicted a great year for silver investors in 2013, with gains as high as 38%. Philip Klapwijk, international head of metals analytics for Thomson Reuters GFMS, stated "a rebound in investment demand stemming from continuing loose monetary policies is expected to drive silver prices towards and possibly over $50 throughout 2013."
Klapwijk stated purchaser interest might not match that of 2011, however it will rise in comparison to 2012. "We would not be shocked also if silver's gains outpaced gold's, not just because the usual outcome of lower liquidity but additionally as memories of early 2011's painful losses (in silver) carry on to fade," stated Klapwijk. Here's why silver might be the precious metals star of 2013.
General, GFMS says, demand for silver in 2012 broke down as follows: 43% from industrial customers, 30% from investment demand, 21% in the manufacture of jewelry and silverware, and also the remainder from photography and producer de-hedging, or closing out positions that had been utilized as being a hedge.
In 2013, GFMS sees industrial demand being a larger element of greater silver prices. Another is, obviously, investment demand. Through Nov. 23, holdings in silver exchange-traded funds totaled 623 million ounces. That is up 47 million ounces in the 2011 year-end figure.
In addition to "the persistence of ultra-low interest rates" driving investment demand, Klapwijk also cites demand from emerging markets as being an element. "In China, for instance, jewelry demand is expanding at a double digit rate," he stated.
GFMS also expects further producer de-hedging - unwinding positions utilized as being a hedge - next year. This continues the trend from 2012, when GFMS says producers de-hedged roughly ten million ounces of silver. Klapwijk stated, "Producers carry on to provide into outstanding positions quicker than they're replaced."
International Resources Specialist Peter Krauth is even more bullish than GFMS. Krauth stated he's expecting silver prices - at $32.55 in New York these days (Thursday) - to climb to $54 an ounce in 2013. Amongst the factors Krauth cited for greater silver prices consist of the re-election of U.S. President Barack Obama, the gold/silver ratio and demand from each investors and business.
How can one cash in on Greater Silver Prices? A number of ETFs give investors an opportunity to attempt to money in on greater silver prices. One of the best ETFs will be the iShares Silver Trust (NYSE: SLV). With some $5.5 billion in assets, SLV will be the world's biggest silver-backed ETF, utilizing JPMorgan Chase & Co. (NYSE: JPM) in London as its custodian. SLV shares, which represent approximately 1.0 silver ounce each, are easy to buy and sell through your brokerage account.
Investors need to also consider the Sprott Physical Silver Trust ETV (NYSE: PSLV). Sprott actually allows investors to cash in the units in the exchange for physical silver bullion. The physical bullion that backs the fund is kept in Canada - away from the potentially grasping hands of Washington, but still in a market that safeguards property rights and that is easy for you to physically gain access to. My recommendation is to buy gold and buy silver and hold for the long-term safeguards for your assets and wealth, and protection from devastating inflation, which is here to stay.
SilverDollar.cc, (http://silverdollar.cc), based in Stoughton, Wisconsin is a leading provider of Internet based content development and distribution services for commodities traders and investors in the precious markets, especially gold and silver.
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