'Silver likely to double to $50/oz in 2 years'
Tuesday, 03 July 2012 | 00:00
Silver prices is likely to double to $50 an ounce in a two-year period, said Bombay Bullion Association President Prithviraj Kothari.
According to Kothari, “I am more bullish on silver compared to gold, driven by heavy usage of the white metal in the solar industry. If I have money, than I'll buy silver instead of buying gold as it is cheaper.”
Silver has around 50% of its demand from its industrial applications; from cell phones to automobiles, to its place in medical applications. Silver's properties of being malleable, withstanding high temperatures and conductivity, separate it from other metals; making silver a leading favorite for investors.
Silver's increased industrial demand has lead to exceptionally large gaps in supply which means as an investor, it is critical to hold the physical asset of silver; rather than certificates, and stocks.
The global manufacturing silver outlook is very promising, with China expected to ramp up their demand significantly for industrial output. More demand and less supply, can mean only one thing; scarcity. Increased demand from investors and industrial applications could lead to silver prices soaring.
The silver price has declined 22% since the start of March this year, versus a fall of 6.9% in gold price.
Source: Commodity Online
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