In 2013, silver (COMEX:SIH14) tended to be more volatile than precious gold. Spot silver prices crashed almost 36% from $30 per ounce to sub-$20 levels. However, in stark contrast to gold ETFs, the holdings in silver ETF shares held on. After the disastrous 2013, what is in store for Silver next year? Analyst community looks to be divided on silver’s prospects. While most of them expect further drops in prices, a few bet on recovery in silver’s industrial demand in the year ahead.
UBS recently cuts its 2014 price targets of Silver by $4.50 per ounce to $20.50. It also cut its 2015 price targets from $24 down to $21. UBS believes that improved global economic stability would lead investors out of safe-haven investments like gold and silver. The global financial services firm expects sluggishness for Silver prices to continue in the near future.
According to Canadian Imperial Bank of Commerce (CIBC) estimates, silver is poised to touch $19 by end of 2014. Further, it believes that any change in ETF demand could send the prices far lower.
On the other hand, Citi is not too bearish on Silver. The Citi estimates the 2014 Silver prices at $20.30. It also predicts further price improvements in the years to come, with targets of $22.20 for 2015, $22.50 for 2016, and $23 for 2017.
Merrill Lynch foresees weakness in Silver prices during early-2014, with a higher year-end target of $23.13.It cites that rising industrial activity will boost the demand for the metal during the latter part of the year.
Commerzbank too share bullish view on Silver’s industrial demand. According to them, the Silver prices are expected to average at $21.50 in 2014 and $24.50 in 2015.