Silver prices will rise to $50 an ounce before the end of this year on increased global demand and declining inventories of the metal, said David Hightower, president of the Hightower Report inChicago.
Record gold prices will shift consumer demand to jewelry made from the cheaper silver, especially in India, Hightower said today at a R.J. O’Brien & Associates LLC client conference in Chicago. Investors also will boost purchases of silver to hedge against inflation, he said.
May silver in New York has more than doubled in the past year to $35.935 an ounce yesterday. Silver inventories held in warehouses for delivery against New York futures fell last week to the lowest since August 2006.
“We should see silver demand increase and we will reach my $50 objective this year,” Hightower said. “Silver production is not keeping up with demand.”
No comments:
Post a Comment