HSBC sees silver stalling out at $23
- HSBC’s James Steel and Howard Wen predict silver’s price, down ~35% YTD, is likely to hover at $17-$23/oz. for the remainder of 2013, thanks to the rising supply of the metal, the dampening effect of Fed policy shifts and weaker demand from ETFs.
- On the plus side for silver are higher demand in jewelry, industrial applications, coin and bar sales, and from India, but the firm thinks none of those are enough to counteract negative trends. Hoever, there are reports lately stating that the supply of silver is tightening not expanding. Industrial uses of silver, for the most part use up silver and it is not recoverable unlike gold, steel, aluminum, etc.
Anyone that doubts that actual physical silver is in higher demand, try buying Silver Eagles, Maple Leafs, or Pandas. They are out there but getting harder and harder to find and the premium is growing larger.
