According to respected precious metals analyst and broker, Stephen Smith, physical silver is likely to be the “emergent leader” of 2012 commodities investments. Citing the white metal’s initial 2012 performance, Smith notes that silver has already outperformed all other commodities in the first quarter.
Smith further comments on the global economic factors that are likely to increase silver prices this year. Declining unemployment, slowly increasing building construction, and increasing demand for technology components made from silver are among the best reasons to invest. Silver demand in China is likely to surpass Chinese above- ground silver stores.
In house analysis of surveys conducted by the Silver Institute indicate that silver could go to $40, or even $50 per ounce in the third and fourth quarters of 2012. Smith stresses the importance of owning physical metal, rather than silver derivatives, such as ETFs, certificates or futures. Paper instruments representing silver, like other paper assets, have additional risk associated with them.
