Written by Roman Baudzus
Yesterday, the silver price reached a new three-decade high of more than US$34 per ounce. Although the stock markets, many agricultural commodities as well as platinum and palladium suffered heavy losses at the end of yesterday's trading session, the gold and silver prices were comfortably positioned. According to many market experts the strong performance of the two precious metals will continue in the foreseeable future, since the investment demand among capital market investors is rising further.
While the mining production of silver will probably rise by 8 percent to 800 million ounces in comparison to the previous year, the demand for the white metal is expected to keep up with this development. The high demand for silver should continue to support its price development in the future, the precious metals consultancy GFMS said in a statement yesterday. A further increase by 40 to 50 percent in comparison to the average price in 2010 could become reality in 2011. Under these circumstances, the silver price could rise to between US$35 and US$40 this year; still more than 20% under its all-time high of approximately US$50, which had been reached January 18th, 1980. The demand for silver was ..READ MORE