Kitco reported that according to CPM Group’s recently released Silver Long-term Outlook 2013 study, silver prices may consolidate for another three years before there is a pick up in investor interest and industrial demand. At that point, a “secular bull trend” may resume, with prices reaching “nominal highs.”

As quoted in the market news:

After rising at a compounded annual average rate of 23.2% between 2002 and 2011, silver prices have declined since 2011. In 2012, prices fell 11.7% to average $31.17 an ounce. Through September, prices this year averaged 20% less than in the same period of 2012.
This declining trend is expected to persist in the medium term, with prices consolidating through 2016, CPM Group said in the study.
Still, the consultancy looks for silver to be supported at an average annual price no lower than $18 an ounce prior to 2016, said Erica Rannestad, commodities analyst with CPM Group and lead author on the report, in an interview with Kitco News.

Click here to read the full Kitco report.

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