By Kim Kyoungwha
June 22 (Bloomberg) -- Silver may surge to as much as $23 an ounce next year, the highest price since 1980, as investors seek a cheap alternative to gold and a global economic recovery boosts industrial demand, according to Commerzbank AG.
“As with gold, silver is also considered to exhibit stabilizing characteristics when it comes to value,” Weinberg wrote in yesterday’s report. “Silver is reasonably priced compared to gold and constitutes a low-cost alternative.”
The ratio between gold and silver had risen to about 65 compared with an average of 59 over the past “several years,” the report said. “We expect this ratio to swing back, leading to potential for silver,” Weinberg said. FULL STORY