Where is silver price heading? What will be the average silver price in 2011? Bullion investors have been predicting the possible price of silver between the range of $30-$50 for the year 2011.
A new forecast on silver from precious metals analyst Mark Thomas says that the white metal price will hit $42 in 2011.
Thomas’ prediction published in the Silver Shortage Report says that silver price will touch a $42 target by the end of 2011, which would be an approximate 40% gain for the year.
“Our 2012 price target is $65, which would be an additional 55% annual gain in 2012. Finally we expect the price to hit $120 by the end of 2013 for an additional 85% annual gain. That would mean the price would go from approximately under $30 recently to $120 over the next three years for a potential staggering 300% plus gain. Do we have a crystal ball and know this for sure, of course not! We also do not try to predict the price trend tomorrow, next week, next month or over the next three to six months. However, the evidence to us says that over the next one, two and three years our price predictions are not only possible but very probable,” says the report.
It further states: "Since the total world Silver market is probably less than $35 billion, it trades more like a smaller cap stock compared to the gold market which is more like a large cap blue chip stock. It is very volatile, whipped back and forth by money flow in or out and because it relies on the futures market so heavily, it can easily be manipulated."
According to Thomas, there is a developing supply/demand imbalance situation in the physical silver market.
“While that situation has been already been occurring somewhat for years, we believe in the next three years it will manifest itself more prominently in the upward price of silver,’ he points out.
“We believe the true degree of the imbalance has only recently started to be reflected by a rising silver price. We also believe that Silver has just begun a significant multi-year move higher. We think the potential subsequent investment gains will be so significant, that it is the single best investment opportunity currently in both financial (stocks and bonds) and all commodity asset classes (not just precious metals),” Thomas adds.
Thomas says he believes in this thesis so strongly that he has moved 80% of his family's investable assets into a silver exchange traded fund and the remaining 20% in one silver mining stock.
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