"Investors buying physical bullion are boosting the cost of silver, a metals analyst told a commodities outlook session at the annual convention of the Prospectors and Developers Association of Canada (PDAC) in Toronto.
"That is the single most important factor pushing the price up," said Jeffrey Christian, CEO of CPM Group in New York. "They are not a residual actor; they are the single most active participants in the market."
Christian, noting the price of silver touched US$19.80 in New York on Friday, predicted the price will rise above 1980's annual average price of $21 - $22 per ounce. The price did spike as high as $48 on an intraday basis in London and New York in January 1980, but fell quickly and averaged around $38 for the full month of January that year. On an inflation adjusted basis, the daily high price would be about $96 today."
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