Endeavour Silver's CEO Gives Outlook for Silver in 2012

"Silver is likely to have a somewhat bumpy road in early 2012," stated Bradford Cooke, the Chairman and CEO of Endeavour Silver

. "But over-all, 2012 should prove to be a solid year for the precious metal, as it has a chance to test its all-time highs (roughly $50 an ounce) later in the year." On December 23rd, Benzinga spoke to Cooke about his outlook for silver in 2012. Cooke's view

had much to do with the global economic situation. He stated that the current financial stresses in Europe would likely weigh heavily on the price of the metal, as deflation concerns, a weakening euro and strengthening dollar could prevent silver from rallying significantly. But ultimately, Cooke believed that Europe would find ways to print money. Europe would do this in order to re-schedule sovereign debts while rescuing their commercial banking system. According to Cooke, this money printing should result in the next surge in investment demand for silver. Cooke described the ongoing situation in Europe and its impact in the global markets is an echo of the American financial crisis of 2008. However, the situation in the Eurozone will take longer to unfold, as all 17-member countries must participate in the solution. When asked about the prospects for silver in terms of industrial demand, Cooke stated that while fabrication demand remains strong, investment demand is growing much faster and therefore has a greater influence on the silver price in the shorter term. In many ways, silver is a more intriguing metal than gold. Chatter has long circulated that the price of silver is prone to market manipulation. Cooke addressed the topic, stating that while he is not a "conspiracy theorist," he acknowledged that the Federal Reserve could intervene in the market. He cited previous Fed statements, in which the institution said that it will intervene in any major market to maintain order on an as-needed basis. Specific to silver, Cooke noted that the majority of silver production comes as a byproduct from copper, lead, zinc and gold mines. These poly-metallic companies tend to hedge or sell forward their silver. Given how small the silver market is relative to these other metals, it would be no surprise to Cooke if the silver market has been be manipulated from time to time. Currently, spot silver is trading at roughly $29 an ounce. The metal hit a record high last spring when it approached $50 an ounce. It then experienced a much publicized crash, and has been moving in a mostly

since. At any rate, 2011 was a roller coaster year for the precious metal. As the situation in the Eurozone continues to unfold, 2012 could prove to be just as exciting.