Silver Forecast Suggests Little Short-Term Change
At the beginning of this week there was little change in silver futures as speculation continued over a possible rise in interest rates by the Federal Reserve.On Monday silver for September delivery rose by 0.12% to $19.528 per troy ounce after dropping around 0.4% last week. On Tuesday it was down at $19.49 at midday.
Geopolitical events are having no effect on the price of silver; rather the increasing strength of the dollar is keeping the price down. Unless something unexpected happens in the coming weeks then the price of silver is expected to remain fairly static.
However, there are a number of silver mining companies that are taking their mines out of production or temporarily ceasing activity as low silver prices are making them uneconomical.
If this trend continues and demand begins to be significantly larger than supply then prices will begin to rise again.
As a result analysts are recommending investors to be patient with silver. There are many indications that in the long term the price will rise significantly, in the meantime the price is expected to hover around the $20 mark.