Mavens: Silver prices will slide 26%
Consensus view is $11.12/oz average
By Tom Stundza -- Purchasing, 1/20/2009 11:02:00 AM
A consensus forecast of two dozen precious metals market analysts forecasts that silver prices will drop 2% this year to an average of $11.12/troy ounce.
MKS Finance, the Geneva-based precious metals and financial services group, says in a report to clients that “silver surprised many in 2008” when a demand pickup and investor interest increased silver prices by 8% to an average $14.99.
However, MKS says depressed precious metals market conditions will reduce silver consumption and generate less interest for investors. “Silver will only play a minor role in portfolios on the back of a more conservative investment approach," says the MKS advisory to its clients.
Earlier this month, a Bloomberg survey of 20 analysts suggested that gold prices may strengthen as governments and central banks work to end the financial crisis. However, these analysts also noted that prices for silver, platinum and palladium--metals that are more reliant than gold on industrial demand--are all likely to tumble this year as economies weaken. Silver has many industrial applications such as in mirrors, electrical and electronic products, and photography, which still is its largest end use.
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