Bank of Montreal declares "A New Paradigm for Silver"
Silver investing is going mainstream.
BMO Capital Markets has come out with a report that declares that there is a New Paradigm for Silver.
The report states:
- Demand is expected to outstrip production growth. BMO Research analysis indicates silver demand & supply fundamentals should remain positive to the end of 2012E.
- The prospects of further quantitative easing combined with sovereign debt concerns, competitive ‘fiat’ currency devaluation in western economies, and the return of inflation could result in investment demand exceeding BMO Research’s projections and extending the supply deficit through 2014E.
- This shift in the supply/demand dynamic lies in contrast to the broader investment perception for silver, which is rooted in the 1990’s when the metal was in abundance, driven by the demise of the photographic industry and Chinese selling.
- The paradigm shift for silver suggests that the traditional benchmarks for silver, such as the long-term historical ratio with gold, are no longer valid.
- Accordingly, the markets are searching for a new set of criteria against which to benchmark the price of silver, with a bias to the upside.
As we have mentioned before, investment in Silver by the general public hasn't even begun. And once capital starts flowing in, the price of the metal has the potential to go parabolic.
You can
read the full report here.
Silver is the investment opportunity of the next decade.
Now... the mainstream is starting to take notice.
A new paradigm indeed!