Mitchell Krebs, CEO of Couer d’Alene Mines Corp, which is the largest silver miner in the United States, said that silver prices will continue to go up because of economic ambiguity and production turn down.
Krebs said: “As long as we see things like the EU (Euro zone currency turmoil) and as long as we run the kind of deficits here, neither of which we see being cleaned up in the short-term, those two things will continue to be positive backdrops for gold and silver”. He added that the prices on silver will become more volatile rather than other metals, particularly gold. Silver prices will climb up ahead in percentage terms more than its counterpart, gold. Hence, it will see the short-term growth rather than the larger gold market.
With a subsequent rise in the prices on COMEX silver to a record of $ 50/oz in May 2011, it has confronted a huge drop down, and trading around $33 levels with a decline of up to 30%. Silver price climbed up in the previous months of 2011, but it goes on altering because of fluctuation in the commodity market.
Because of the European debt crisis, this got a lot of media attention in Greece, and extended to Italy and Spain. Spanish and Italian bond yields are on record high notes due to the optimistic nature of macro-economic fundamentals. Italy is also the world’s 3rd largest bond market, which has already learned from the Greek default that can be absorbed by the EU. However, the Italian debt is something that the EU can’t resolve.
According to the forecast of John Embry, an officer of Sprott Asset Management, Silver price will climb up to $70/oz in the next two months. Hence, the investment in silver will be good option for those who are looking for profitable returns.
Image Credit: Creativecommon/Teravolt