Monday, September 12, 2011

Silver price up to $600 ounce predicted

According to Urs Gmuer, the Asset Manager of Dolefin, an authorised collective investment funds manager, Silver is predicted for a greater run than gold over the coming months.

A distortion in the gold silver price ratio, currently sitting at 45:1 together with a declining output of silver being mined means that silver supplies out number gold supplies by under 10 to one which, according to Gmuer, means a correction is due.

Gmuer states that once this occurs, the silver price would settle at between 6.7 percent and 10 percent of gold prices. So if gold reaches $6,200 per ounce, silver could very well reach a peak of $620 per ounce and settle at $600 dollars an ounce.

"Since World War II, the world population has almost quadrupled. However, most of the increase was in countries that had closed political systems, such as the Soviet Union, China and India," he said. "When these countries started to open up in the 1990s, these people saw they could increase their level of well-being. It is pent-up demand."

Urs Gmuer, asset manager at Dolefin, a Swiss investment advice firm, advised CNBC. "Gold prices may reach $6,200 per ounce in a bull run which will end all major bull markets."

This means a predicted future silver price up to $600 ounce is eminently possible.

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