There’s no doubt that silver has seen an impressive performance so far in 2015. According to one report, the beginning of 2015 has been the best start to the year since back in ’83 when we still had payphones and carburetors in our cars.
As you can imagine, forecasts for what silver (…or any investment for that matter) will do over the course of this year vary widely.
A survey of top-analysts and traders published by the London Bullion Market Association shows a 2015 silver price average of $16.76.
On the other hand, a report from Bloomberg believes silver is entering a bull market on global economic woes and safe haven demand. The report also sites a high gold:silver ratio, which means silver is pretty cheap in relation to gold.
According to Caroline Bain of Capital Economics Ltd. In London:
“Silver will benefit from all the stimulus measures and rate cuts being announced aggressively by the central banks. The stimulus measures will at some point boost usage of the metal.”
Bain expects the metal to rise to $20 per ounce by the end of the year.
Another variable is physical demand, which is expected to remain strong despite falling production, which is expected to decline 2% in 2015 according to Precious Metals Insights Ltd., a Hong Kong consulting firm.
On the other hand, silver could hit new lows in 2015 says investor David Busick, who according to his custom Fibonacci method predicted a 2014 low of $14.09. Busick was only off by $0.06. His charts analyze price movements over a long-period of time, and show how silver struggles to get anywhere above $18.50 per ounce.
What do you think silver will do this year?