UBS Lowers 2014 Silver Price Outlook

Mineweb reported that yesterday, UBS Investment Research lowered its 2014 silver price outlook from $25 per ounce to $20.50 per ounce. For 2015, the firm expects the white metal to average $21, down from its earlier forecast of $24.

As quoted in the market news:

‘The more upbeat outlook on the global economy, the reduction of tail risks, and the growing appetite to take on more risk suggests that safe havens like gold will become even more unfashionable up ahead,’ said UBS. ‘The yellow metal’s performance this year highlights the extent to which gold has lost its allure and implies that it will take a very substantial change in the macro picture for this to be reversed.’

‘As 2013 comes to a close, the New Year will likely tempt investors to further move out of safe havens—and especially out of gold—into other assets. Gold has become old news, and investors are likely to be eagerly searching for new places to put their cash to work,’ said the analysts.

Click here to read the full Mineweb report.