silver predictions 2014
While specialists disagree on their silver predictions for silver in the year 2013, there’s a general agreement that the precious metal will increase in price by the end of the year. In the recent past, the predictions for the value of silver have been determined by quite a few factors. These include, but aren’t limited to the strength of the American Dollar and the price of other precious metals such as Gold. As the economy of the United States recovers from the terrible impact of worldwide recession this year, in addition to industrial expansion, more investors find silver a more attractive metal compared to Gold.
Although specialists disagree on their silver predictions for silver in the year 2013, there’s a consensus that the precious metal will cost more by year end. Predictions for the price of silver previously have been marred by a variety of factors in the past. These factors include the strength of the US dollar as well as the price of other precious metals like Gold. As the economy of the United States recovers from the terrible effects of global recession this year, as well as industrial growth, more investors find silver a more attractive metal compared to Gold.
One of the fundamental factors that should notably push the commercial demand for this precious metal is the ever-increasing economic expansion, especially in developing countries, one among them being China. A number of analysts project that the demand for industrial silver will increase by up to 7 percent in 2013. Should this happen, investor interest in silver will without doubt increase, something that should push prices a lot higher. On the other hand, motor companies are also likely to cause a rise in industrial demand for silver, bearing in mind the fact that previous forecasts had shown a considerate increase in the manufacture of autos, especially luxurious ones.
The first several weeks of 2013 has seen low forecasts for silver prices, with the price of this metal registering as little as $28 an ounce. These figures could possibly be an indicator that the price of silver will reach its rock bottom, but according to analysts, these prices are just showing a downward trend and are set to shoot up. This is a recognizable trend, taking into account that stocks do languish at very low prices before surging strongly in the upward trend.
Concerns in regards to the discrepancies between the price of silver and silver mining stocks will still be there in 2013, as there is still a difference. But is it’s worth noting that these discrepancies are at the lowest they have been in over thirty years. It has been argued in the past that one reason for this is the facts that increase in demand have been majorly centered in the investment sector and not the industrial area. If this is true, then the difference will decrease further this year because it is projected that there will be an increase of up to seven % in industrial demand for silver. Then again, according to some pundits, it doesn’t matter where demand comes from. By the third quarter of 2013, the price of silver is projected to hit a high of not less than 40 dollars an ounce, something that will provide mining stocks with an opportunity to take advantage of the profits.
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While most silver predictions are bullish, it’s vital for an investor to play caution when deciding to invest in Silver. First and foremost, you ought to decide between investing in physical silver or promise papers. For first time investors, it is highly suggested entering the market by purchasing physical silver first. On the same breath, price forecasts for silver may be somewhat grim, if the the demand and supply of the same (silver) as well as those of related metals such as Gold are considered. The strengthening value of the dollar may consequently increase investor confidence in the American Dollar, something that might have long-term negative impact on the projected price of silver.
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