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Volatility for silver

[mouserman]

 -- HSBC looks for volatility in precious metals. “The broader macroeconomic climate still seems to favor gold and silver as far as we can discern,” the bank says, citing accommodative global monetary policies, economic growth in nations such as India and China that have a predilection toward owning bullion and sovereign-debt issues. Still, “we sense that the gold and silver markets may become increasingly volatile. Penetration of the psychologically important USD50/oz level for silver appears highly likely, but this could just as easily encourage heavy profit-taking as further buying,” HSBC says. The bank suggests the recent charge higher in silver to just below $50 an ounce, while perhaps “overdone,” has been supported by real physical demand, noting that the director of India’s largest bullion importer has said the country is likely to almost double its silver purchases this year.