Global silver prices could reach $7.50/oz end '99
Tuesday February 23, 10:14 am Eastern Time
NEW YORK, Feb 23 (Reuters) - Silver prices are expected to reach $7.50 an ounce on a
quarterly average basis in the second half of 1999 and $8 to $10 an ounce by 2000,
according to Jeffrey Christian, the top analyst at consulting firm CPM Group.
Christian also called for a supply deficit of 144 million ounces in 1999 versus a deficit of 192
million in 1998. He delivered his remarks at a speech launching the consulting firm's 1999
silver survey in New York.
''With (silver) inventories dwindling, something will have to coax the silver out of the hands of the people who hold those
inventories,'' Christian said.
Despite the narrowing of the supply deficit, ''it is clear that silver inventories continue to be drawn down and are approaching
critically low levels,'' he added. ''The evidence is everywhere in the market, from the price and contango performance to the
degree of difficulty fabricators are reporting in finding metal to the behavior of refiners and dealers.''
At the end of 1998, silver bullion inventories stood at 359.8 million ounces, down 217.2 million ounces from the previous year.
''That represents more than two years of cover for the anticipated shortfall of newly refined silver supply at the current
projected rate of deficit for 1999,'' said Christianson.
At 1007 EST, silver was trading at $5.49 an ounce, up 3.5 cents from the previous close and ranging $5.44 to $5.50. |
