Silver price estimates upped through 2013: Raymond James

If the past year has been a good one for gold, then it’s been a great one for silver.

Since August alone, silver prices have jumped more than 60%, crossing the $30 an ounce threshold. Year to date, the price of silver has averaged $19.86/oz, a 35% increase on the 2009 average.

“With the drivers for precious metals remaining firmly in place, we are increasing our long-term price assumptions for silver bullion to $17/oz from $14/oz,” the Canada research team from Raymond James said in a note. “The current key drivers behind the rise in silver are similar to that for gold, including quantitative easing I, II, likely III and possibly IV, paper currency debasement, sovereign debt issues, concerns over future inflation and strong investment demand, particularly from emerging markets.”

Near-term, Raymond James has raised forecasts to $30/oz from $19.50/oz in 2011, $30/oz from $18.50/oz in 2012 and $25/oz from $17/oz in 2013. Also, the firm now forecasts $22.50/oz for silver in 2014.

“We expect silver prices to continue to perform well, following the gold price, over the next few years. However, over the longer term we remain somewhat more cautious as new supply enters the market,” the note said.

Target prices for the primary silver group covered by Raymond James have increased 25% as a result of the price revisions.

Top picks include Pan American Silver, a producer, Bear Creek Mining Corp., a developer, and MAG Silver Corp., a developer and explorer.