Salient to Investors:
Dominic Schnider at UBS said an ounce of gold will be worth 70 ounces of silver by the end of 2013 as demand fails to soak up an excess of silver. The average multiple over the past decade is 58, and last reached 70 in February 2010. Schnider said silver is in fabrication surplus, and the only thing keeping it alive is investment demand and there is no meaningful increase in ETFs.
Morgan Stanley forecasts global silver supply will outpace fabrication demand, including sales for electronics and photography, in 2013, a 5th year of surplus.
50 percent of silver is used in industry, versus 10 percent for gold.
The IMF forecasts 3.1 percent global economic growth for 2013.
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