Silver fell to $10 lows in 2008 and rocketed to almost $31 highs at the end of 2010.

So, what are some silver price forecasts and predictions for 2012?

Reasons For a High Silver Price Forecast

Reasons For a Low Silver Price Forecast

Even low silver price predictions are relatively high when looking to past decades. One analyst, who is a member of  the London Bullion Market Association, forecasts $20 per ounce this year.

Why might some prognosticators feel that a correction is just around the corner?

1. The Economy Is on the Mend

If the US economy and dollar improve quickly, this may have a negative effect on gold prices, which is used as an alternative currency for hedging. While silver may somewhat follow gold down in price if investors shed some of their holdings, the industrial uses of silver should also help create a counter balance.

2. Investors Unloading

Most hawkish analysts have a short-term rationale against silver prices correcting: investors selling silver bullion (or silver ETFs which would have the same effect) could theoretically flood the market, temporarily justifying a lower price.

Some bearish investors call for an average price of $21, with lows to $16. They feel that if the industry expresses its displeasure over high prices and finds suitable alternatives to silver, it could have a far-reaching negative effect.

Where to Find Analyst Reports on Silver

In a market that changes its opinions as rapidly as Lady Gaga changes looks, investors interested in precious metal trading should stay alert to any big change in valuation outlooks. Where can you find silver analyst forecasts and reports?

• London Bullion Market Association gives the forecast for many precious metals covered by 25 major analysts.
• Kitco.com has a huge variety of both short and long term precious metal outlooks.

Final Word

So, what is the final word on Ag? While price volatility is anticipated due to the surge of investor interest, most silver price forecasts are calling for an average price of $29.88, with a range from $16 to $50 per ounce.

Do you have a stance on the forecast for silver? Share your thoughts in the comments below!