Silver to Surpass $45 by the End of 2012

Bullion experts who have a good number of years of experience in tracking the precious metal silver are predicting that silver is most likely to surpass the level of $ 45 by the end of 2012.  In the first quarter of this year, the price of silver varied from $ 25 per ounce to $ 57.50 per ounce with a mean average of $ 34.04.

Silver Predictions for 2012

Based on the current metrics silver is expected to end the year at the level of $ 45 per ounce at the end of the year. Predictions are almost unanimous, if one were to consider the opinion of not only the technical analysts but also the largest names in the financial world such as HSBC, Morgan Stanley and Bank of America.

After a roller coaster ride in the year 2011, silver started its upward rise from the beginning of calendar year 2012 itself. This is because investors started looking at precious metals such as silver as a safe haven when an economic crisis in the Euro zone was staring them in the beginning of the year.

This is when the purchase of silver also began increasing. There was a rush to buy silver American eagles and other such rare coins by those who wanted to make sure that their investments were being directed in the right direction. The price of silver also found support as strong demand came in from exchange traded funds across the globe.

Industrial Demand Propping up Silver Prices

Besides, there was a steady rise in industrial demand for silver. Over the years silver has gained importance as an industrial metal. All electronic equipments that are a part of our everyday lives need a fair amount of silver to function. Be it cell phone batteries to high end super computer processors, everything needs silver.

With the steady increase in the use of electronic goods the need for silver has also gone up substantially. As a result there has been a frenzied pace of activity in silver mines and production has been stepped up. The bad news is that the sources are depleting fast. This is to say that before we know it, there may not be any silver left in our mines across the world.

It is then that the price of silver will rise at a break neck speed as supply dwindles and demand keeps rising. If the current predictions are anything to go by, it won’t be long before $45-50 per ounce of silver will seem like a dream.

To put it simply therefore, if you do not own any silver yet, this is the time to invest. Not only is it going to provide you with the much needed protection at a time when markets are on a roller coaster ride, it is also a great investment for the future. In fact silver traders and bullion analyst predict that in less than five year silver may be priced at as high as $ 200 per ounce.

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