Cheap Silver Promises Healthy Returns in the Coming Months

Online, April 29, 2013 (Newswire.com) - In 2011 silver hit a record high of nearly $50 an ounce, and 2 years later the gray metal is trading at half of that. In 2012 silver traded between $27 and $35, but since the beginning of the year the metal has plunged more than 20% to its current range trading around $24.

Commodity investors have been shocked by the recent movement in the precious metals markets and silver is no exception. For weeks silver has been trading below 2012 levels and it has dropped back to prices as low as 3 years ago. Most are in agreement that the low prices are not sustainable and ChanPark International Trading Floor Manager, Sebastian Gray believes that it is a great time to increase exposure to silver. "At below twenty four dollars per ounce silver looks great to me. I have personally purchased physical as well as ETFs and expect anywhere between a fifteen and fifty percent return this year."

At current trading levels, the cost of silver is very near production costs. Along with an increase in industrial demand due to manufacturing growth, it seems that silver will likely rebound and that further declines below the $23 range hit this month are highly unlikely.

Traditionally investors gain exposure to silver through purchasing physical silver, ETF's and buying stocks in mining companies. Though all currently offer promising opportunities, Gray recommends purchasing physical silver and ETF's that are backed by physical silver as they are much safer than mining companies in the current market.

Gray expects silver to return to 2012 trading ranges between $27 and $35 by Q4 of this year.