RBC Analysts Raise Silver Estimate
Source: Seeking Alpha††(12/7/07)
With silver equities trading at levels considered a discount to long-term silver prices, RBC Capital Markets expects they will recover and trade up from the lower end of valuation ranges they experienced in the past few months. The firmís long-term forecast for silver is $12 to $13 per ounce, while the current spot price is roughly $14.25.
In a note to clients, RBC analysts highlighted recent developments such as spot silverís breach of the $15 per ounce mark for the first time since May 2006, as well as a revised plan to boost throughput by 30% at the Penasquito project in Mexico.
They continue to see global demand for the metal outpacing new supply and have raised their silver price estimates by $0.50 per ounce annually to $14, $14.50 and $15 for 2008 through 2010...
Meanwhile, RBCís reasons to be bullish on silver in the next few years include expectations for continued weakness for the U.S. dollar, an increase in demand for the metal and concerns regarding primary silver mine supply in coming years.