2013 Silver Price Forecast: Silver Will Perform Like Gold on Steroids
The forecast for Silver is for the precious metal to set a a new all-time nominal price record, likely reaching as high as $54 an ounce. Despite silver’s dependency on gold, it does have some distinct fundamentals, too. Here are Peter Krauth’s, (Global Resources Specialist, Money Morning) key drivers for silver prices in 2013:
- The Gold/Silver Ratio: Before the financial crisis, the gold/silver ratio was around 50 (meaning an ounce of gold would buy you 50 ounces of silver) and trending downward. In late April last year silver exploded higher, pushing the ratio down below 30.
That was short-lived, as silver’s dramatic rise was unsustainable. I had said so at the time. The ratio recently returned to a high level near 60. In 2013, look for the ratio to head back down again, meaning silver will rise faster than gold.
On a long-term basis, I think we’ll see this ratio move down closer to 20. So right now, silver is looking rather undervalued relative to gold.
- Four More Years of Obama: The President has been very good for silver prices. In fact, he was so good, he
