Silver Price Forecast in 2014

While the silver price forecast for 2014 is not a very optimistic one, many are hoping that silver can buck the downtrend; gold is facing and move higher in the months to come! Ever wondered –‘What’s so special about silver?’ “Silver is a precious metal because it is rare and valuable, and it is a noble metal because it resists corrosion and oxidation,” Geology.com provides the answer!

In addition to this, “Silver’s easy availability, diversified use and lower price relative to gold places it high in the list of industrial and investor preference. Silver is malleable, ductile, strong and can endure high temperatures, making it ideal to use in various industries, from electronics to pharma,” informs The Economic Times. Little wonder then, that people all over the world invest so heavily in silver! And, just like gold, while silver is also considered to be a relatively safe investment to make…this precious metal markets is also highly volatile! It is therefore natural, that a large number of people rely on weekly, monthly and yearly silver price forecasts before investing in it.

Silver Price Forecasts are Difficult to Make

While the silver price forecast for 2014 was first made available in December 2013, itself, it is still being re-evaluated by financial analysts and precious metal experts, based on changing economic conditions. What many do not realize is that, ‘market predictions for silver’ are more difficult to make than ‘market predictions for gold;’ and, that to a large extent, the former is influenced by the latter. Silverdoctors.com explains why, in the following words: “Silver or the silver price is generally much more difficult to analyze than gold. Part of the reason is that so much less is known about the specifics of the silver market. Silver analysis is often done “through” the analysis of gold. This is not completely wrong, since silver and gold mostly moves in a similar manner – they have the same monetary properties after all.”

Silver Price Forecast for 2014

In the above context, experts have predicted a gloomy year ahead for gold and are only slightly more positive, about the silver price forecast for 2014. “… most analysts see the white metal selling for about $21 per ounce this year…both Moody’s Investors Service and Sharps Pixley have come forward with similar predictions. However, some silver market watchers have higher hopes for the metal and believe that 2014 could bring increased silver market strength, as well as more impressive prices,” states Charlotte McLeod.

“Banks on average are forecasting slightly higher average silver prices for 2014, with the market expected to get some strength from industrial demand. economic outlook improves. Investment demand is also expected to return to support silver. Yet analysts are keeping their upside forecasts muted for silver gains as the metal is traditionally influenced by gold’s direction. With gold seen struggling next year, silver may also have a cap on prices,” informs Kitco News. In its report, it cites the 2014 silver price forecast, made by the  CIBC, Citi, Commerzbank, Standard Chartered and UBS.

How Reliable Is the Silver Price Forecast For 2014

While most of the eminent financial institutions and precious metal experts, seem to agree on the 2014 silver price forecast, they have drawn up, many others prefer to not rely on them.“So, what good is it then to have such a wide spectrum of predictions noted at the outset? What do such diverse expectations really tell us about silver’s future? All they really tell us is that no one has a clue what the metals will do,” declares Joseph Cafariello for Wealth Daily. “After all is said and done, when everyone has finished speaking and presenting their cases, there’s just one thing to take away from all these predictions…We’re better off not paying any attention to them! Because for every bullish expert you show me, I can show you a bearish one and a neutral one…” he observes.

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