For silver, selling pressure mark is $45

LONDON (Commodity Online) : Silver can go a long way before it reaches a point where it meets selling pressure.
People began to trust precious metals such as silver and gold over governments in many emerging nations such as India and China, boosting prices.
Analysts also said that geo-political tensions, there is no shortage of it since 2011, and the subsequent global uncertainty can drive up the price of silver along with gold.
Some analysts set silver’s actual selling pressure point at $45 despite the fact that short sided moves in silver looks more volatile than in gold.
The white metal will soon hit the $45 mark as more and more countries across the world started to worry over deflation, or expansion of the monetary base in their respected areas, they said.
The latest is the UK, as its inflation jumped 4.4% in February from 4% in January. Inflation will make silver and gold more attractive as an alternative to paper currencies.
Weakening US dollar, apart from occasional up’s, over a six month period really helped precious metals especially silver, reflecting its aggressive dominance since mid-2010.
Traders are waiting for prices to climb as high as $45 to cash in on provided geo-political tensions to flare up safe haven demand and there is no point in thinking otherwise.
Silver is giving more returns to traders since second half of 2010 and will continue to keep up that status for this year too.
However some analysts said silver ETF’S will bring along risk of selling pressure as holdings have leveled off over the past week and may start to drift lower.
They said a steady recovery in ETF holdings suggests the path of least resistance leads higher, although a short-term pullback is not out of the question while as the current tug-of-war is resolved.
However, silver prices took a small beating Wednesday as the dollar recovered but the white metal retained its top position as the best bet as a hedge against inflation.
Spot silver edged down 0.3 percent to $36.22 an ounce after hitting a record high of $36.70 an ounce on March 7.