Following Goldman Sachs’s gold outlook cut, another major investment bank, UBS cut its silver price outlook for 2013 and 2014.
The bank trimmed its 2013 silver price outlook to $24 an ounce from $29 per ounce and 2014 outlook to $25 an ounce from $30 earlier.
The bank attributed the cut to gold’s poor performances and said silver prices would come under pressure as sentiment towards gold sours and that silver has no drivers of its own.
In a note, UBS strategist Edel Tully said the elements of silver, which offer investors exposure to the gold price and effectively an insurance against macroeconomic uncertainties, currency debasement and the implications of such on inflation, will work to its detriment based on the current macro outlook.
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