Silver likely to outperform Gold

According to GFMS forecast the prices of silver will move in the range of $13.2 to $16.5 per ounce in the next 12 months. The average price in the first ten months of the current year was up 17% on year-on-year basis at $13.16 per ounce. During the same period he metal remained volatile in the Indian market and went as low as Rs.16, 800 a Kg and to a peak of Rs.20, 715 a Kg. Mine production of silver for the year is forecasted to be up by 725 tonnes, a rise of 3.6%. This is mainly due to higher production in Chile, Bolivia and Mexico. However, the decline in production in Canada, Peru, Russia and Kazakhstan could partially offset the increase. On the other hand, scrap supply could see a fall on the back of reductions in recovery of silver from photographic wastes.