BMO Research forecasts silver to average US$18.72/oz this year, $20/oz in 2011 and decline to $18/oz in 2012, with the long-term silver price projected to average $14/oz.
In a first-quarter silver recap published Wednesday, BMO said its preferred senior silver producers are Fresnillo, Pan American Silver, and Silver Wheaton, while First Majestic Silver Corp. (TSX:FR;OTCQX:FRMSF) is the preferred mid-tier producer.
"BMO Research forecasts a relatively constrained physical supply/demand environment for silver and maintains the view that silver will outperform relative to other metals in the medium term," the analysts said. They cited the recent 6.5% surge in silver since the beginning of this month and the ongoing market equity correction on the back of market jitters generated by the European sovereign debt crisis.
Meanwhile, BMO anticipates increased gold purchases "by investors and central banks alike, as 2010 unfolds and the very existence of the euro is being questioned."
In a first-quarter silver recap published Wednesday, BMO said its preferred senior silver producers are Fresnillo, Pan American Silver, and Silver Wheaton, while First Majestic Silver Corp. (TSX:FR;OTCQX:FRMSF) is the preferred mid-tier producer.
"BMO Research forecasts a relatively constrained physical supply/demand environment for silver and maintains the view that silver will outperform relative to other metals in the medium term," the analysts said. They cited the recent 6.5% surge in silver since the beginning of this month and the ongoing market equity correction on the back of market jitters generated by the European sovereign debt crisis.
Meanwhile, BMO anticipates increased gold purchases "by investors and central banks alike, as 2010 unfolds and the very existence of the euro is being questioned."
