Newedge USA LLC is making some bold predictions for silver, claiming “silver will soar to $70 an ounce by March 2012 as physical demand climbs in Asia and investors seek a haven asset”. This is a pretty bold statement, even for the biggest optimists to swallow.
“Silver and gold are an excellent hedge in troubled times” as European and the U.S. leaders struggle to resolve debt woes, Mike Frawley — the global head of metals, said yesterday in an interview in New York. Demand for gold and silver will be “very strong long-term from Asia, and the economic trend in the West is improving,” he said.
This is quite stunning news, and it is cause for both some serious thought and some serious caution. Again, this is just a prediction. If you are a buyer of silver futures, then you understand everything about predictions and trying to predict silver prices.
On the side of serious thought, this news definitely makes investing in silver a bigger attraction than it already is (and it is already pretty hot right now). On the side of serious caution, you don’t want to make the mistake of putting all your money into silver thinking that you are going to net over $30 an ounce by this March. While that would be amazing, these types of predictions get made all the time.
Silver may very well hit that price in March of 2012 – and it may go higher, but it could also still be hovering around the $40-$50 an ounce price – which is still a great price for silver.
If you are feeling like this is an opportunity then by all means, get yourself invested in some silver. However, it is good to ere on the side of caution, as these types of predictions are thrown out all the time and most of the time they are not correct.