Sunday, February 26, 2012

Banksters: 'Silver is a Commodity in Surplus and There is Little Indication That Will Change Anytime Soon'

Institutional Silver Price Forecast 2012
Bank's 2012 Silver Predictions
You can always tell when silver is nearing a critical technical level, as the hit pieces come out of the woodwork.  In this particular piece, the banksters state: 'Silver is a commodity in surplus and there is little indication that will change anytime soon'. 
Hmm. That's news to us.  Wait...are you talking PAPER silver? Or real phyzz?

Banksters' 2012 Silver Price Predictions including warnings that silver could fall to $25 or even under $20 are included below:

Institutional Silver Price Forecast 2012

Prices this year are not expected to be driven up by silver’s industrial personality. HSBC predicts that industrial demand will likely support prices, but expects growth to be moderate. ScotiaMocatta made similar predictions citing cautious consumers and the outlook for a difficult 2012 as reasons for softening fabrication demand though new applications may result in modest growth.
Mining production was expected to increase by 30 million ounces in 2011 and by a similar amount this year. Production from recycling has been on the rise and is expected to continue in 2012. Silver is a commodity in surplus and there is little indication that will change anytime soon.
TD Securities predicts that oversupply is a risk for prices.”In the past, silver’s industrial side has generated deep corrections for the white metal and we don’t expect it will be much different this time around, with a correction to materially below $25/oz entirely possible,”the firm said.
Investment activity
Given the state of supply and the potential of a global slowdown, investors should not expect supply and demand fundamentals to be a real driver of prices. On the contrary, a strong silver market in 2012, if realized, is expected to rest on the backs of investors. Market sentiment will be, by most analysts accounts, the make or break factor this year.
Many long term investors seemed to have largely maintained their positions last year. Further rebuilding of long term investments is expected. Coin and small bar demand was also strong and is expected to remain positive in 2012. Together these investors provide more support for silver prices.
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Surely massive global quantitative easing will not have a factor on the price of silver, right guys?
Well anyways, thanks for the confirmation as to the significance of the $35-$36 level in silver.