THE HEAD of a leading precious metals consultancy believes the Silver Price could continue to rise before a correction sets in.
"I think $50 will probably be taken out this year," said Philip Klapwijk, executive chairman of GFMS, quoted in the Financial Times.
Klapwijk does, however, sound a note of caution.
"When you see prices moving up so fast you have to be careful...I can't help but think that if we hit $50 we could see a significant correction driven by profit-taking."
Silver Prices have risen primarily as a result of strong investment demand, according to figures released by GFMS this week. The Silver Price rose 78% last year, with demand for investment the primary driver, states the World Silver Survey 2011 – produced by GFMS for the Washington-based Silver Institute.
The survey reports that a net $5.6 billion was invested in Silver last year, almost twice the figure for 2009. Industrial and jewelry demand also grew.
Supplies of Silver also rose, up 14.6% to 32,870 tonnes. Scrap supplies, net government sales and producer hedging drove much of this growth, with mine production only rising by 2.5%.
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