The recent commodity environment has seen a downward trend developing in silver. For a long period of time, the white metal price was sitting near lows not seen for almost a year. Now, the safe-haven status of precious metals is being reinforced by the ongoing Eurozone crisis. But except the recent minor gains, silver prices remain depressed, while demand is still intact.
Silver production and output has increased in recent months with the expectation of more supply on the way, guiding silver downwards. As such, investors and analysts have been trying to call a bottom and a healthy entry point for some time now.
Is it now the right time to invest in silver?
Many market analysts express strong positive views. Before all, not so long ago the white metal traded at $50. Now it is sitting well off of its historical high. An entry point is already here or at least approaching.
According to HSBC’s latest Silver Outlook report, the metal’s prices are expected to move back above $30/oz by year end. This short term outlook may give a better view on silver’s future for those looking to make a speculative play. HSBC also projects stable silver prices in 2013, which is re-assuring for long positions holders.