Charteris Treasury Portfolio Managers chairman and chief executive Ian Williams has predicted the price of silver will rise by 500 per cent in three years, while gold is set to increase to $2,500.
Williams says silver prices are set to embark on “a sustained bull market” that will see prices rocket from $32/oz to $165/oz by the end of October 2015.
He says: “This forecast is based entirely using technical & cyclical analysis and is in keeping with the mathematical form displayed so far in the bull run that has taken silver from $8 an ounce in 2008 to its current price of $32 an ounce – having hit $50 an ounce in 2011.
“Silver is much more volatile than gold, witness the 50 per cent rise in price between June & October this year- a mere 95 days – and we expect silver to continue to dramatically outperform gold as the bull market in precious metals is by no means over.
“Our forecast for gold is for a rise to $2,500 but that is small beer to what we expect to see in silver.”
Williams says he has been switching the emphasis in the Way Charteris Gold fund – the fund he manages alongside Nick Taylor – away from pure gold mining stocks towards gold companies that have a much higher involvement with silver.
He has also increased his exposure to Fresnillo in the Elite Charteris Premium Income fund, making it the largest holding in the portfolio. In the most recent factsheet available on FE Trustnet, Fresnillo represented a 3.9 per cent holding in the fund.
“If our view is correct the increased weighting of silver within our gold/precious metal fund relative to the other gold funds in the sector should result in a significant outperformance over the other gold funds,” he adds.