Precious Metals Market Outlook--Silver

摘要

The sharp fall in silver's price since early February is a development that we believe forms part of an overall retreat that has yet to play out fully. We expect a further slide in silver's price to $13-14/oz when investors rein in their silver purchases following an eventual cessation of the US Federal Reserve's bond-buying. This will result in lots of new projects being abandoned and existing mines focusing on extracting some other metals at the expense of silver. Assisted by increasing fabrication demand, the market will move into balance. Moreover, market deficits are forecast for 2017-18 as investor sales pushes silver down to $10/oz and more supply is cut.