HSBC sees silver stalling out at $23

HSBC’s James Steel and Howard Wen predict silver’s (SLV) price, down ~35% YTD, is likely to hover at $17-$23/oz. for the remainder of 2013, thanks to the rising supply of the metal, the dampening effect of Fed policy shifts and weaker demand from ETFs.

On the plus side for silver are higher demand in jewelry, industrial applications, coin and bar sales, and from India, but the firm thinks none of those are enough to counteract negative trends.

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Comments (7)
  • apberusdisvet
    , contributor
    Comments (3105) | Send Message
    5 Aug 2013, 03:14 PM Reply Like
  • Straychan
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    I was wondering the same thing.
    5 Aug 2013, 03:55 PM Reply Like
  • steve7700
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    All other reports I have seen lately state that the supply of silver is tightening not expanding. Industrial uses of silver, for the most part use up silver and it is not recoverable unlike gold, steel, aluminum, etc.
    Anyone that doubts that actual physical silver is in higher demand, try buying Silver Eagles, Maple Leafs, or Pandas. They are out there but getting harder and harder to find and the premium is growing larger.
    5 Aug 2013, 04:14 PM Reply Like
  • gmmpa
    , contributor
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    Steve I'm with you. If HSBC’s James Steel and Howard Wen's prediction is based on demand for silver only for jewelery it should not be taken seriously. If silver goes to 23 by YE that is a 21% gain in 6 months. I'll take that return in every investment I can get every day.


    I hope silver goes down more so I can take a full position. My basis is 19. I am hoping it goes a lower. It definitely has more upside than down. I believe it will run up more than 23 particularly if the FED keeps inflating the money supply. Unlike gold Industrial demand will also drive silver higher.
    5 Aug 2013, 09:40 PM Reply Like
  • thrash
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    - I place no value whatsoever on the utterings of these bankster's. Considering the mess they made of their business models and to the worlds economic stability, they are the very last people to be making any comments or predictions on any matter.
    5 Aug 2013, 04:49 PM Reply Like
  • Rodger D Fetters
    , contributor
    Comments (37) | Send Message
    I am in for the long haul. In time, maybe in a couple of year, silver is coming back with a bang. Sad to say, my basis is 25. I may think of selling when it gets back to 30 something. I have both slv and slw.
    5 Aug 2013, 11:31 PM Reply Like
  • Agbug
    , contributor
    Comments (1306) | Send Message
    IF this was an attempt to push the market via a "news item" it's not working today, with silver actually green this morning against gold going sub $1300.


    Was at my local dealer yesterday and he had little to sell. "I can't even get rounds" he said, and junk half dollars are at a $4 premium. Two years ago, when I was selling to him, the display case was full of rounds, eagles, Sunshine paper weights, you name it. With a quarter of the market dependent upon silver scrap, and most looking to buy rather than sell, the scrap supply is shrinking. Silverinstitute numbers for last year -


    So if primary silver and gold miners are scaling back to profitable ore, scrap supply is down, India has shifted to silver, Russia isn't selling, 15% of U. S. production is offline at KUCC, U. S. retail demand hasn't abated, it looks like they'll have a hard time jaw boning prices to $17, barring a general equities sell off.
    6 Aug 2013, 07:44 AM Reply Like
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