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Superfund chief forecasts silver at $100 per ounce by 2014

Prominent hedge fund Superfund's told Reuters on a phone interview that he strongly believes that the precious metal silver is predicted to surge even higher in the coming years as investors continue to prefer it due to its leverage to gold and positive technical outlook.

Although the hedge-fund differed to divulge details on short-term price outlook, it expected silver to trade between $80 to $100 an ounce by 2014. The Austria-based systematic technical trading fund is currently has about $1.3 billion under management with a capability to invest in around 120 futures markets.

According to Aaron Smith, managing director of Superfund Financial it is proven that silver leveraged gold. In fact, he expects gold to perform well, but silver to perform better with higher volatility.

Silver elevated to nearly 60% this year, reaching a record high of $49.51 an ounce on April 28, before displaying its volatility by plummeting 35% over the following two weeks. Since then silver prices have stabilized at around $36 and $38.

Comparatively, gold has gained nearly 9% this year, platinum 3% and palladium lost 1%.

Smith also said that silver broke the $50 bar effectively then it could confidently march towards $70 to $80 in the medium-term.

Reuters market analyst Wang Tao has predicted long-term technical outlook for silver to be bullish indicating that silver could reach $54.76 an ounce in the coming years.

It was way back in the 1980's when silver traded near the $50 mark as the Hunt brother made an effort to trap the silver market costing them their family fortune and a tighter regulation of the markets.

Smith also told Reuters that considering the flood of money supply in the United States, the wholesale degradation of credit in the European Union and the renewed central bank interest in accumulating precious metals, silver per ounce should trade for $100 by 2014 in most currencies and twice in euro and the yen.

We will be addressing related subjects on following articles. Thanks for reading!
Silverprices.com Team

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