Silver Likely to Reach New Highs in 2012
Silver likely to reach new highs in this year as global mining production strains amid increased demand, said Stephen M Smith, the managing member at Smith McKenna.
Smith continued that, “key global factors look on par to stimulate silver price to higher levels as unemployment is on the decline, manufacturing demand is up, and economic growth is in order with GDP up 2.2%.”
“If positioned correctly, many investors stand to capitalize on a wealth creation opportunity that is likely lurking right around the corner; similar to the 2011 boom that was cut short by major disasters, consumer worry, and economic souring,” he added.
According to the recently issued World Silver Survey by GFMS, global mining production (supply) for silver only saw a 1.4% increase throughout 2011; although industrial demand and investor support continued to be strong. This news justifies the potential for higher silver prices in the near future; as total demand and industrial usage rises, amid constrained supply and production.
Silver outperform all other metals in the first three months of 2012, it has practically doubled in value since 2010; making it the emergent king for investors. Gold saw an approximate sixty percent increase during January-March.
Source: Commodity Online