Analysts predict lower silver prices, great for buying
- Published: Nov 18, 2014, 6 AM
With the price of silver continuing to drop, market analysts see significant buying opportunities for investors but some are forecasting even lower prices.
Jim Bach reports on ETF Daily News online that investors have the opportunity to stock up on the precious metal at "absurdly low prices."
"Just this summer the price of silver inched toward $22 an ounce for the second time this year. Silver really began to look as if it was reversing its dismal 2013 fortunes where it fell 35 percent," according to Bach. "Silver peaked at $21.445 in July. But since then, it has fallen to $15.665 as of market close yesterday (Thursday) [Nov. 13]. This is a 20 percent drop for 2014.
"Silver is above the new four-year low of $15.315 an ounce it established Nov. 5, but it doesn’t look like the slump is over."
Silver's upward movement is primarily being foiled by the continued strength of the U.S. dollar.
Global Resource Specialist Peter Krauth expresses there will be more downward movement before precious metals can recover.
“Gold and silver are likely close to a final capitulation, probably around the $1,000 level for gold and $12 for silver,” said Krauth.
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