HSBC: Lifts 2012-13 Silver Forecasts; Expects Strong Investor Demand

HSBC has lifted its silver price forecasts for 2012 and
2013 amid expectations that strong bar and coin investment demand, together
with growing interest in silver exchange-traded funds, will push the market
higher, the bank said late Wednesday.
It now expects the silver market to average $34 a troy ounce next year, and
$32/oz the year after--both of which are a $2 an ounce increase on HSBC's
earlier forecasts. "Silver prices will reflect the interplay of many factors.
The single biggest bullish factor, in our view, will be renewed investor
demand," analyst James Steel said.
HSBC has also introduced a 2014 forecast, at $28/oz. "We are raising our
silver price forecasts for 2012 and 2013, but we are not unreservedly bullish,"
Steel said.
At 0924 GMT, spot silver traded at $32.570/oz.