Silver to rebound in long term : KGHM
The miner said silver will be aided by the uncertainty on financial markets and copper will be supported by rising demand on the Asian markets.
Poland's state-controlled KGHM, the largest silver producer in the world expects a rebound in the prices of copper and silver in the long term.
The miner said silver will be aided by the uncertainty on financial markets and copper will be supported by rising demand on the Asian markets.
KGHM's head of hedging Radoslaw Zalozinski said despite the recent decline in copper prices, long term prospects for this market are good and demand from China is still huge, despite a weaker GDP growth rate, and other Asian countries which invest heavily in infrastructure also need copper.
Also the prices of silver should rebound from current low prices, the official said. "The period of high uncertainty on the financial markets, which supported metals in recent years, is most probably not over yet," Zalozinski said. "Therefore it is hard to assume that silver prices will stabilize at the current level for a longer time."
Silver prices may also be supported by the prices of gold, which in turn should rise once the monetary easing used to stimulate economies starts raising inflation concerns, the official said.
The price of copper has fallen by 17% since this year's peak in February ($8.305/t) to some $ 6.870/t on Tuesday, April 23.
Last week, copper is priced at some $ 7.126/t on the LME exchange. Silver prices peaked in late January at $32.25 per Troy ounce, and bottomed at $22.77/Troz mid-April. On Friday, a Troy ounce is valued at $24.35 at the COMEX exchange.
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