Metals Focus predicts a rally in the silver market during the second half of 2017 – with a price above $20 an ounce looking good for the fourth quarter.
Metals Focus, an independent precious metals consultancy, based in London, England, releases periodic analyses of gold and silver which are respected throughout the precious metals industry for their insights and their observations on the way the markets are looking.
They have just released their 2017 “Silver Focus”report, and the good news just keeps going for silver…
There are many reasons for this;
- Metals Focus believe that the main driver is the speed of the Federal Reserve interest rate rises. With the US national debt running ever closer to $20 trillion, these interest-rate hikes will be a feature of the US economy for the foreseeable future.
- Couple this with increasing geopolitical risk – tension in Korea, the Brexit negotiations in Europe, the continuing situation in Syria, Iran and Israel – not to mention economic issues like Chinese debt growth and global oil prices, and it looks like even more good news for precious metals. Their safe-haven positioning as reliable investments is as secure as ever.
- US equities are looking extremely overpriced and still trading at record highs – as are other global stock markets – any correction to this will be good for precious metal as well.
- Any upside to the US dollar is looking bleak – again, this can only be helpful for precious metals.
- Policies due to be implemented by the government are not being seen as helpful to trade or the fiscal outlook in the short and medium term – and the jury is out on the longer term.
- All of the key US economic indicators are underperforming targets and expectations – this is leading to skepticism and flight of capital from markets into precious metals.
Add to this mix, the increase in worldwide industrial production of solar panels, electric vehicles, electronics – and sale of the metal for pure investment purposes – and the picture looks very rosy indeed for silver.
As a result – and in conclusion – Metals Focus states that,
“[All of] this should provide essential fuel for the silver price to rally in the second half of the year, driving the full-year average to $18.30, a level some 7% higher than last year’s figure.”
This prediction is confirmed by the current gold silver ratio which is 73. Back in 2012, when the worst of the 2008 recession was thought to be over, the ratio was 55. By any measure this means that silver is undervalued.
For it to go back to its normal range silver prices need to rise – or gold prices need to fall.
Right now silver has greater growth potential than gold. To get back to the long-term ratio average of 55 it would need to rise 22% to around $21 per ounce.
If that is not a signal to sort out your silver IRA, we don’t know what is …
One of the easiest ways to get started protecting your future is with a precious metals IRA. At Noble Gold, expert advisers will walk you through the entire process step by step. Visit their website to get your free Gold Investors Guide and learn more about the benefits of investing with precious metals.
Article courtesy: Noble Gold