The precious metals market has benefited greatly from the dip in the world economies over the past year as gold and silver prices have increased because of the drop of currencies.
Goldrunner has predicted a significant increase in the value of silver in the coming months due to the state of the world economies and the increase in exploration trends for the metal. Demand for silver has gone up and analysts have noted that a sharp rise may occur in the near future because of the rush to the precious metals market.
Analysts from Goldrunner have laid out a series of three momentum runs that they believe will occur in the near future for silver. The price of this metal, and the mining profits for the companies that extract it, will likely increase by a significant amount because of the high level consolidation that has taken place, according to the news source.
While silver is projected to rise in the coming months, the metal may take a bit longer than gold to reach new record levels. Goldrunner analysts note that the commodity could spike up to more than $60 an ounce due to increased investments within the sector, reported the news outlet.
Silver mining trends have reflected these initial projections, as companies are looking to capitalize on the relatively low price of the metal prior to when the commodity makes its expected run. Numbers from the fractal chart that was used by the analysts show the new highs could occur as early as the end of 2011, according to Goldrunner.
Though gold has been the favored metal for traders during the debt crisis’ that have rocked the U.S. and Europe, the trends may be shifting to favor silver due to the current value of the resource.
“It just stabilized so well after the May decline from $50 per ounce,” Thomas Paterson, chief economist at GoldMadeSimpleNews.com, told the International Business Times. “Silver is a better play than gold for the next three to six months. I could see a quick run to $65 or so.”
Mining profits could skyrocket for the companies who make the investments in silver, as the market has already led to record levels for gold. The current levels for the yellow metal has led traders to view that specific sector as at its peak, according to the news source.
“At the current prices of gold, that level of jewellery in gold has really disappeared,” David Lamb, managing director for jewellery at the industry-funded World Gold Council, told Reuters.
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