Is Silver Set to Soar?

An article published on the business journal’s website last week predicted the white metal will emerge as a winner for the second straight year.

Precious Metals Investing For Dummies author Paul Mladjenovic agrees with Peter’s assessment.

Mladjenovic also said increasing demand for silver as in industrial metal will ultimately push demand higher. Silver is an important element in the manufacturing of solar panels. China, in particular, continues to rapidly increase solar energy production. In its 13th Five-Year Plan, Beijing aims to triple its solar capacity by 2020. Last year ranked as the strongest on record for solar-related silver demand.

But many analysts say a weakening dollar will be the primary factor driving silver’s gains. Gold Newsletter editor Brien Lundin told Barron’s he thinks the dollar is the main reason gold has outperformed silver so far this year.

Lundin noted that the dollar index has fallen 8.8% this year because of “underlying skepticism” about the Federal Reserve’s ability to keep raising rates.

Peter chimed in on the Barron’s article, noting dollar weakness will be good for both gold and silver. He told the magazine he sees a “strong likelihood” that the Fed will have to cut rates and revert to quantitative easing before it can lift rates back to historically normal levels. He told Barron’s a stock market correction or economic decline will force the Fed’s hand.”

Related posts:

Soms heb je van die dagen, dat je je zorgen maakt om de wereld. Dat je je zorgen maakt hoe dit afloopt. Het is net alsof je weer op het schoolplein staat, onzeker, en dat je niet gepest wordt, maar…

Middleware is a pattern used to enhance communication between two or more connected systems. Web servers, application servers and content management system heavily uses this pattern. As web…