Despite the fact that silver prices have been fairly volatile in recent months, at least one expert is predicting that we may see an upswing in investor demand for the metal as a safe haven asset in the new year.

James Steel claims “Coin and bar demand is a growing component of the silver market. We believe that demand for these products reflects widespread retail investor concerns about inflation, economic uncertainty, and fiscal profligacy, European sovereign-debt risks, and geopolitical tensions.”

This has been mirrored by HSBC, who have lifted their price targets for silver in both 2012 and 2013, believing the precious metals industry will be propped up by the metal. Steel added “Silver prices (in the coming years) will reflect the interplay of many factors. The single biggest bullish factor, in our view, will be renewed investor demand.”