Barclay’s Precious Metals Analyst Suki Cooper Speculates on Silver and Gold Future
With precious metals in virtual free-fall Bloomberg solicited the views of Barclay’s precious metals analyst Suki Cooper as to the fundamentals behind these markets.
Regarding silver, Cooper said it is drawn between its industrial and precious metals components, with neither lending support to the market at this moment. Weakness in gold and copper prices is weighing on silver. Investment demand, which had been supportive, is actually turning quite weak, she added. At the start of the year, when gold interest started to dwindle (record outflows), silver actually held up quite well. However, last month, in terms of Exchange Traded Product (ETP) outflows, silver saw outflows of over 500 tons; the weakest since May 2011.
When asked when it was time to get in silver, Cooper said we either have to see demand on the industrial side or investment side stabilize. The industrial component still looks pretty weak. In China, traditionally an area of support for silver, imports plummeted to their lowest level since 2006.
The interview (see below) continued with Cooper further discussing silver fundamentals, the importance of the Federal Reserve, which metal she prefers for investment (palladium and platinum), and her price target for gold in 2014.