Wonder How Short These Guys Are?Silver is 'significantly over-valued' - Fortis Bank
04.05.07, 9:49 AM ET
https://www.forbes.com/business/feeds/afx/2007/04/05/afx3586352.html
LONDON (AFX) - Silver is 'significantly over-valued' and should retreat below 10 usd an ounce in the longer term, investment bank Fortis said in a monthly review of the metals market.
The bank said while a weak dollar and 'investment marketing froth' might lead the metal towards the 15 usd an ounce level in the short term, this will not be sustained in the longer term.
'Reports from India suggest this key physical market may be growing disenchanted with silver jewellery. Meanwhile new mine supply ... is rapidly increasing,' said the bank.
It noted Indian demand for silver slipped last year. Citing a report in India's Financial Express, the bank said demand for silver jewellery fell 33 pct last year while demand for silver for all fabrication purposes fell 9 pct.
At 1.30 pm, spot silver was quoted up at 13.57 usd an ounce against the 13.56 usd level seen in late New York trades yesterday.
maytaal.angel@afxnews.com