Silver expected to reach record highs over next decade

SAN FRANCISCO (Oct 21)  Silver's rally may be far from over: Commodities research firm CPM Group says silver prices could reach record highs over the next decade.

According to CPM's Silver Long-Term Outlook, published this week, a medium-term decline could lead to long-term rise, MarketWatch reports.

Commodities analyst with CPM Group Erica Rannestad said that "after a couple of years of price consolidation, we do expect investors to come back into the market with renewed interest.”

One of the big driving forces will be industrial demand, MarketWatch notes. A supply drop should also boost prices.

Economic weakness has been dragging down demand for the precious metal but as the global economy improves, so will demand.

But over the next few years, analysts predict a tough market – demand is expected to drop by half over the next few years, Kitco reports.

The silver spot price has lost 26% year-to-date, and was last trading at $21.98.