Krauth: Expect Silver Prices At $54 In 2013, Silver Dollar Values Prices Escalate

Jan. 25, 2013 - PRLog -- The world's most respected precious metals consultancy, Thompson Reuters GFMS, came out last month with its 2013 forecast for silver prices. After being bearish on silver prices over the past few years, GFMS has come around and predicted a great year for silver investors in 2013, with gains as high as 38%. Philip Klapwijk, global head of metals analytics for Thomson Reuters GFMS, said "a rebound in investment demand stemming from continuing loose monetary policies is expected to drive silver prices towards and possibly over $50 during 2013." How High Will Silver Go? Learn More >> http://www.silver-dollar-values.net

Klapwijk stated buyer interest may not match that of 2011, but it will rise compared to 2012. "We wouldn't be shocked also if silver's gains outpaced gold's, not only because the usual outcome of lower liquidity but also as memories of early 2011's painful losses (in silver) continue to fade," said Klapwijk. Here's why silver might be the precious metals star of 2013.

Overall, GFMS says, demand for silver in 2012 broke down as follows: 43% from industrial customers, 30% from investment demand, 21% in the manufacture of jewelry and silverware, and the remainder from photography and producer de-hedging, or closing out positions that had been utilized as a hedge.

In 2013, GFMS sees industrial demand being a bigger factor of greater silver prices. Another is, obviously, investment demand. Through Nov. 23, holdings in silver exchange-traded funds totaled 623 million ounces. That's up 47 million ounces in the 2011 year-end figure.

Besides "the persistence of ultra-low interest rates" driving investment demand, Klapwijk also cites demand from emerging markets as being a factor. "In China, for example, jewelry demand is expanding at a double digit rate," he stated. Rare Coins, Silver Coins, Gold Coins >> http://www.silver-dollar-values.net/Selling-Gold/

GFMS also expects further producer de-hedging - unwinding positions utilized as being a hedge - next year. This continues the trend from 2012, when GFMS says producers de-hedged roughly 10 million ounces of silver. Klapwijk stated, "Producers carry on to provide into outstanding positions quicker than they are replaced."

International Resources Specialist Peter Krauth is even more bullish than GFMS. Krauth said he's expecting silver prices - at $32.55 in New York today (Thursday) - to climb to $54 an ounce in 2013. Among the factors Krauth cited for greater silver prices include the re-election of U.S. President Barack Obama, the gold/silver ratio and demand from each investors and industry.

How you can Cash in On Higher Silver Prices? A number of ETFs give investors an opportunity to attempt to cash in on higher silver prices. One of the best ETFs will be the iShares Silver Trust . With some $5.5 billion in assets, SLV is the world's biggest silver-backed ETF, using JPMorgan Chase & Co.  in London as its custodian. SLV shares, which represent approximately 1.0 silver ounce each, are easy to buy and sell through your brokerage account.

Investors should also consider the Sprott Physical Silver Trust ETV . Sprott actually allows investors to redeem the units in the exchange for physical silver bullion. The physical bullion that backs the fund is kept in Canada - away from the potentially grasping hands of Washington, but still in a market that protects property rights and that is easy for you to physically access. My recommendation is to buy gold and buy silver and hold for the long-term safeguards for your assets and wealth, and protection from devastating inflation that is here to stay. How High Will Silver Go? Learn More >> http://silver-dollar-values.net