Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Silver is expected to retain its status as a star performer in the precious metal constellation in the next couple of years, as investors are likely to continue to favour it due to its leverage to gold and favourable technical outlook, said Austria-based hedge fund Superfund on Tuesday.
The systematic technical trading fund, which has some $1.3 billion under management and can invest in around 120 futures markets, expected silver to trade between $80 to $100 an ounce by 2014, but declined to give a short-term price outlook.
"Silver is by all accounts leveraged gold. I expect gold to perform well, and I expect silver to perform better, with higher volatility," said Aaron Smith, managing director of Superfund Financial, in a phone interview with Reuters.
Spot silver shot up as much as 60 percent this year to reach a record high of $49.51 an ounce on April 28, before tumbling 35 percent over the following two weeks.
Silver prices have since recovered and been hovering between a range of $36 and $38. It was last quoted at $36.90 by 0828 GMT, still up nearly 20 percent year-to-date.
By comparison, gold rose nearly 9 percent so far this year, platinum gained 3 percent and palladium lost 1 percent.
Smith said the $30 level provided strong support for silver. If silver effectively broke above $50, it could march towards $70 to $80 in the medium-term.
Long-term technical outlook for silver looks bullish, suggesting that silver could reach $54.76 an ounce within the next few years, said Reuters market analyst Wang Tao.
The last time silver traded near $50 was in the 1980s when Texan oil billionaires, the Hunt brothers, attempted to corner the silver market, which eventually cost much of their family oil fortune and sparked tighter regulation.
"If we consider 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, an ounce of silver should trade for $100 by 2014 and double in most major currencies, notably the euro and yen," said Smith.
GOLD SENTIMENT REMAINS UNDERPINNED
The strength in gold prices is likely to stay due to rising money supply and rising inflation over the next couple of years, said Smith.
"The main drive will not be the economy but the expansion in money supply," said Smith. "The total amount of dollars in the world each and every day is expanding, while gold supply is growing more or less 0.5 percent a year."
Smith declined to give a short-term price forecast, but expected gold prices to increase 50 to 100 percent in major currencies by 2014.
Spot gold hit a record of $1,575.79 an ounce on May 2, extending a decade of bull run. It traded around $1,545 on Tuesday.
A flood of cheap money as a result of prolonged period of low interest rates in the United States added to concerns of inflation worldwide, underpinning sentiment in gold, seen as an inflation hedge.
"We are in the midst of a financial experiment," said Smith. "We are more dramatic about fiscal easing and there's going be repercussions, which will further bolster precious metals."
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Silver is expected to retain its status as a star performer in the precious metal constellation in the next couple of years, as investors are likely to continue to favour it due to its leverage to gold and favourable technical outlook, said Austria-based hedge fund Superfund on Tuesday.
The systematic technical trading fund, which has some $1.3 billion under management and can invest in around 120 futures markets, expected silver to trade between $80 to $100 an ounce by 2014, but declined to give a short-term price outlook.
"Silver is by all accounts leveraged gold. I expect gold to perform well, and I expect silver to perform better, with higher volatility," said Aaron Smith, managing director of Superfund Financial, in a phone interview with Reuters.
Spot silver shot up as much as 60 percent this year to reach a record high of $49.51 an ounce on April 28, before tumbling 35 percent over the following two weeks.
Silver prices have since recovered and been hovering between a range of $36 and $38. It was last quoted at $36.90 by 0828 GMT, still up nearly 20 percent year-to-date.
By comparison, gold rose nearly 9 percent so far this year, platinum gained 3 percent and palladium lost 1 percent.
Smith said the $30 level provided strong support for silver. If silver effectively broke above $50, it could march towards $70 to $80 in the medium-term.
Long-term technical outlook for silver looks bullish, suggesting that silver could reach $54.76 an ounce within the next few years, said Reuters market analyst Wang Tao.
The last time silver traded near $50 was in the 1980s when Texan oil billionaires, the Hunt brothers, attempted to corner the silver market, which eventually cost much of their family oil fortune and sparked tighter regulation.
"If we consider 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, an ounce of silver should trade for $100 by 2014 and double in most major currencies, notably the euro and yen," said Smith.
GOLD SENTIMENT REMAINS UNDERPINNED
The strength in gold prices is likely to stay due to rising money supply and rising inflation over the next couple of years, said Smith.
"The main drive will not be the economy but the expansion in money supply," said Smith. "The total amount of dollars in the world each and every day is expanding, while gold supply is growing more or less 0.5 percent a year."
Smith declined to give a short-term price forecast, but expected gold prices to increase 50 to 100 percent in major currencies by 2014.
Spot gold hit a record of $1,575.79 an ounce on May 2, extending a decade of bull run. It traded around $1,545 on Tuesday.
A flood of cheap money as a result of prolonged period of low interest rates in the United States added to concerns of inflation worldwide, underpinning sentiment in gold, seen as an inflation hedge.
"We are in the midst of a financial experiment," said Smith. "We are more dramatic about fiscal easing and there's going be repercussions, which will further bolster precious metals."
No comments:
Post a Comment