Is silver going to skyrocket?
In 2022, mine production is expected to increase by a mere 2 percent to 843.2 million ounces, while overall global silver supply is expected to also increase by 3 percent to 1,030.3 billion ounces. The growth in silver mine production is expected to continue over the medium term.
If inflation continues to rise and reaches double-digit values through 2022 and 2023, the price of $100 an ounce for silver could be possible. Consider that in 2021, we saw inflation rates averaging around 5%, which was the highest rate since 2008.
David Morgan of the Morgan Report sees the potential for silver to hit US$50 in the short term. Speaking to INN in February 2022, he pointed out that high levels of stock market volatility will make silver more attractive to investors.
The short-term price prediction for silver is set at $16.91/toz by the end of 2019, according to the World Bank. The long-term prediction to 2030 forecasts a significant drop in the commodity's price, reaching $13.42/toz by then.
Using the current silver price of about $25 per ounce, a 10-year bull run could put the price of silver anywhere from $150 to $750 per ounce. The $750 figure would probably mean that we are in a hyperinflationary environment.
These five years would bring a significant increase: Silver price would move from $27.87 to $60.59, which is up 117%. Silver will start 2024 at $27.87, then soar to $31.24 within the first six months of the year and finish 2024 at $34.12. That means +62% from today.
Based on this chart our Silver price prediction 2025 is $120 per ounce. This chart was originally prepared in June 2019 and then updated in mid-February 2022. The 'Big Scary Plunge' in March 2020 distorted all of the Financial markets including Silver.
While Silver's price can react dramatically to changes in the economy, it is unlikely that Silver will reach $1,000 per ounce.
My silver price target for year-end in 2022 is $21 per troy ounce. That's slightly below the current price (about 1 percent lower), and well off of silver's previous high for the year.
At today's time of writing (13.05. 2022) the ratio is currently at 87:1, which is a higher ratio than the mean of the past 30 years, indicating silver as the better buy right now.
Is it better to invest in silver or gold?
Silver is more volatile, cheaper and more tightly linked with the industrial economy. Gold is more expensive and better for diversifying your portfolio overall. Either or both may have a place in your portfolio. Arguably the best use for gold as an investment is to mitigate portfolio risk.
A $500/month supplement would need 300 ounces of silver to get through one year, or 1,500 ounces for five years. If you want $3,000/month, you'll need 1,800 ounces for one year, or 9,000 if it lasts five years.
The bank's silver price forecast for 2025 saw the precious metal averaging $22.5 throughout the year, and continuing to fall to an average of $21 in 2024. According to TradingEconomics' global macro models and analysts' expectations, “silver is expected to trade at $18.33/oz by the end of this quarter”.
Though prices have gone down in these periods for the year, it has also been observed that the lowest price of gold and silver have been higher than the lowest price of gold and silver in the previous year. So, the gold bar price in mid-June 2022 will still be higher than the price of gold in mid-June 2021.
He is an expert on personal finance, corporate finance and real estate and has assisted thousands of clients in meeting their financial goals over his career. Warren Buffett does not invest in gold. He has invested almost $1 billion in silver, so the reason for his aversion is not simply a dislike for precious metals.
Silver is seen as a safe haven investment in uncertain times, a hedge against inflation and stocks. Silver's use as an industrial metal in many fields also affects its price performance and outlook. Silver is cheaper than gold, but more thinly traded, making it more volatile and illiquid.
Silver prices typically fall, on the other hand, when investors seek growth, or when consumers are purchasing fewer items made out of silver. To get the most money for your silver, you should sell it when demand, and prices, are at their highest.
While the silver price is typically flat in March, the best month to buy is June, followed by October.
This is the BEST Silver to Stack in 2022! - YouTube
And silver ETFs rose by 150 million ounces to close at a record high of 1.21 billion ounces. In other words, demand for silver's two main functions—industrial and investment—is growing. This means… We should expect higher silver prices in 2022.
Is silver becoming rare?
Market Prices
That being said, silver is currently considered a very rare and undervalued above-ground precious metal. Although it's running at a supply deficit for the time being, many speculate it's only a matter of time before the price of silver reflects its true value.
World Bank estimates show the price of silver stable at around $18/oz over the next 10 years. Futures contracts with delivery in the next 5 years put the price of silver at around $26/oz.
The silver price has long struggled to break the $30 mark – the last time it happened was in 2013. However, silver is still up nearly 26% over the past five years, as the price trended below $20 throughout 2016.
That is because the U.S. dollar would essentially be worthless if it were to collapse in value. In a sense, the price of silver would be infinite if measured in terms of the U.S. dollar!
Silver hit US$48.70 per ounce, the highest silver price to date, towards the end of the 1970s.
Platinum. Platinum, like gold and silver, is traded on global commodities markets around the clock. Because it is rarer than gold or silver, it frequently commands a higher price (per troy ounce) than gold when markets and economies are stable.
However, silver demand, especially jewellery demand in top consumers India and China, dropped as in-store jewellery sales fell, due to a number of stores being closed after COVID-19 outbreaks.
Unlike paper currency and stocks, physical precious metals like gold and silver are resistant to inflation because they derive their value differently than paper currency. The value of the dollar is dependent upon the actions of the federal reserve, central banks, global factors, and the general health of the economy.
Under current federal law, gold bullion can be confiscated by the federal government in times of national crisis. As collectibles, rare coins do not fall within the provisions permitting confiscation. No federal law or Treasury department regulation supports these contentions.
For most investors, gold is going to come out on top every single time. It has the most stable price, the best risk to reward ratio, and the best track record of any of the precious metals.
Can silver be destroyed?
Tarnish can easily be removed, however, and does not destroy the metal the way oxidation process known as rust destroys iron. The fact that silver is otherwise impervious to the elements helps define it as a precious metal. Silver is a rare metal that has long been valued for its versatility.
With a global population of approximately 7.8 billion people as of 2019, that's about 0.385 ounces of silver per person or nearly as much silver as found in a standard pre-1965 United States 90% silver half dollar.
As a safe haven asset, silver's price during a recession can move significantly and quickly. It is fair to say that generally the silver price goes up during a recession, but past trends also don't necessarily mean this will be repeated in the future.
Before we go further in this discussion it must be pointed out that to be a real silver millionaire it would take 715 troy ounces (one bag of silver) times 1,000, for a total of 71,500 ounces of silver, or one million in face value coinage.
Whether or not silver coins or bars are better depends on who you are as an investor. Smaller investors may have more use for collectible, legal tender assets like coins while large investors might not need collectible assets – they need silver that can be purchased at a lower premium over the spot price.
Silver remains an exciting investment opportunity for 2022 and beyond. The argent metal is known for its higher volatility compared to gold—a characteristic which was clearly on display over the past year in 2021.
Silver is now rarer than gold and will be for all of eternity. From this point forth we work from current silver production alone and, from this point forth, demand will outstrip production without exception.
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Consumption share of the leading silver consumers in 2010, by country.
| Characteristic | Share of consumption |
|---|---|
| United States | 21.6% |
| China | 14.5% |
| Japan | 11.6% |
| India | 10.7% |
Butler's calculations show that JPMorgan (JPM) has piled up the largest holding of physical silver in modern world. Since the silver price peak in May 2011, the bank has accumulated between 100 and 200 million ounces of physical silver (if not more). The equivalent in metric tonnes is between 3,110 and 6,220 tonnes.
Do banks buy silver coins? If you have silver coins and want to sell them for the value of their silver, a bank is likely not to be a good choice. Most banks will only give you the face value of whatever coins you turn in, regardless of their metal content. So, a silver nickel would be worth 5 cents, for example.
Is it smart to buy silver right now?
Is silver a good investment right now? For those seeking a hedge, absolutely. It's a cheaper alternative to gold, with all the potential of this universally recognized safe haven. Whether used to diversify a portfolio or as a direct hedge against inflation, silver stands as a smart investment in the current climate.
Generally, the best way to invest in silver is through ETFs or ETNs, not mutual funds. Most people who invest in silver want exposure to the price of silver rather than stocks of companies that engage in silver mining and manufacturing.
2) Warren Buffett. Often publicly ranked as perhaps the “World's Wealthiest Person”, the Chairman and CEO of the large and highly successful Berkshire Hathaway, Warren Buffett, once bought a massive hoard of silver between 1997 and 1998. The following 1998 press release tells part of the story: BERKSHIRE HATHAWAY INC.
While Silver's price can react dramatically to changes in the economy, it is unlikely that Silver will reach $1,000 per ounce.
The World Bank's Commodity Markets Outlook in April 2022 saw the silver price averaging $24.2 in 2022. The bank's silver price forecast for 2025 saw the precious metal averaging $22.5 throughout the year, and continuing to fall to an average of $21 in 2024.
Silver is now rarer than gold and will be for all of eternity. From this point forth we work from current silver production alone and, from this point forth, demand will outstrip production without exception. [Can you imagine what that means for the future price of this, indeed, precious metal?
That is because the U.S. dollar would essentially be worthless if it were to collapse in value. In a sense, the price of silver would be infinite if measured in terms of the U.S. dollar!
My silver price target for year-end in 2022 is $21 per troy ounce. That's slightly below the current price (about 1 percent lower), and well off of silver's previous high for the year.
At today's time of writing (13.05. 2022) the ratio is currently at 87:1, which is a higher ratio than the mean of the past 30 years, indicating silver as the better buy right now.
Silver is seen as a safe haven investment in uncertain times, a hedge against inflation and stocks. Silver's use as an industrial metal in many fields also affects its price performance and outlook. Silver is cheaper than gold, but more thinly traded, making it more volatile and illiquid.
