UNITED STATES July 19 2016 3:26 PM
LONDON (Scrap Register): Commerzbank upped its year-end silver forecast to $19.50 an ounce and called for $21 an ounce at the end of 2017.
Commerzbank was not as upbeat on silver as it was gold. This metal has also risen sharply since the Brexit vote, helped by large ETF inflows.
As is the case with gold, the net-long position of futures speculators is high, meaning correction potential, Commerzbank said.
However, analysts continued, Chinese silver imports have lost momentum in recent months and the sharp rise in silver prices could adversely impact industrial use for this metal.
Under the bank’s forecast, the silver price would underperform the gold price and the gold/silver ratio would rise to 69 again from a current level of just under 67.