According to the report by Mitchell Krebs, CEO of Couer d’Alene Mines Corp, which is the largest silver miner in the United States, silver prices will continue to rise due to economic ambiguity and declining production.
Krebs said: “As long as we see things like the EU (currency turbulence in the euro zone) and as long as we have the kind of deficit here, neither of which we see clearing up anytime soon, those two things will continue to be positive backdrops for the gold and silver”. He added that silver prices will be more volatile than any other metal, especially gold because silver trades in a small sector compared to gold. Silver prices will rise ahead in percentage terms more than its counterpart, gold. Therefore, he will see short-term growth rather than the larger gold market.
With a subsequent rise in COMEX silver to a record $50/oz in May 2011, its price has faced a big drop, trading around $33 levels down as much as 30%. Therefore, the price of silver increased in the first months of 2011, but continues to change due to the fluctuation in the commodity market.
As a result of the European debt crisis, this got a lot of media attention in Greece and spread to the regions of Italy and Spain. Spanish and Italian bond yields are at record highs, another reason may be the bullish nature of macro fundamentals. Italy is also the third largest bond market in the world. In general, Italy has learned from the Greek default, which could be absorbed by the EU. The Italian debt is something that the EU simply cannot solve.
If the situation prevails further, silver prices will rise in the future. According to the forecast by John Embry, Sprott Asset Management, the price of silver will go up to $70/oz in the next two months. Therefore, investing in silver will be a good option for those looking for more returns.
Silver is an important metal when it comes to the market, a small alteration in its price has a great impact on the global market. With the above statistics, it is a good possibility for investors to look for ample profits by putting their money in silver. The price of silver is about to go up. Therefore, you must make a wise decision before it is too late and invest in silver based on your ability to make good profits in the future.