Silver price is expected to continue its rebound trend upwards through to the end of the year, possibly breaking the US$35/troy ounce resistance. This is aided by the movement of Gold as central banks and Market-makers alike jump at the opportunity to add to their holdings (Silver and Gold trend together, though Silver is traditionally more volatile). India demand is expected to remain weak in the medium term, but this should be offset by improving Chinese demand and a recovering US economy. Ben Bernanke should carry on its stance on the open-ended QE, despite facing the possibility of a fiscal cliff and resultant recession. This would ensure market movement favourable to Gold despite the tax cuts, investors look to Gold as a hedging investment amid this (political) uncertainty. (Although it the debt ceiling would most likely be extended or removed)

EW maintain our view of Silver’s long term ...