Silver costs to underperform gold costs, however there's a limit – ABN AMRO part 1

Georgette Boele, senior FX & precious metals strategian at ABN AMRO, suggests that they expect silver costs to say no within the close to term and expect an additional deterioration in their outlook for world growth and world trade.

Key Quotes

“We have below agreement forecasts for economic process within the eurozone and also the America. we have a tendency to expect the Chinese and Indian economies to weaken further. Next to it we have a tendency to expect weaker world trade. Industrial demand accounts for over 1/2 total silver demand. jewelry demand is around 2 hundredth of total silver demand. If {the world|the worldwide|the world} economy and global trade slow any (we don’t expect a recession), this can weigh down silver demand and also the outlook for silver costs. additionally, we have a tendency to expect profit taking in gold costs and this could additionally drag silver costs lower.”