Some Expect High Prices for Silver in 2008
At least one forecaster, John Embry, with Toronto based Sprott Assett Managment, is predicting colossal gains for spot silver in 2008. He thinks circumstances are right for a near doubling in value for the most accessible precious metal.
Embry admitts that the market seems unaware of what he sees as significant indicators. In reality, I think most traders are quite aware of the dive of the dollar. The difference is that Embry is expecting a total debasement, while most others expect some form of rebound as the new year progresses.
Any way you look at it, I think volatile shifts up and down for the next few months in all the precious metals can be expected. Keep an eye on currencies and major commodities such as oil also, as they will have direct and opposite relationships with gold and silver prices.
Expect to hear a lot from both the Gold-Bug and History-Repeats-Itself camps in the news as metals remain at the focal point through the winter months. Keep in mind that each has their agenda and read what they say with your own logical balance.
For my part I do not see a ceiling just yet, but will be expecting a 1980's style fall once the dollar and our economy regain a foothold. But with unemployment figures on the rise there is no reason to expect people to shy away from gold and silver just yet.