- Forex 40 +
Along with gold, silver is one of the most popular investments for many investors if they want to protect their own assets against inflation and crises. In addition to the physical possession of silver, you can also invest in silver stocks and silver futures or speculate on the performance by means of CFD trading. As an investor, one is now sure to ask: How will the price develop? What does the silver price forecast look like?
Of course, predicting the future of any financial asset is difficult, but we’ve taken a closer look at the precious metal. We have mainly focused on the development of the silver price in recent years and will explain how the silver price is created and whether silver is actually as good an investment as you always hear.
|year||Silver price forecast||Course development|
|2021||$ 33.90 per ounce||28.32%|
|2022||$ 43.30 per ounce||63.91%|
|2023||$ 45.62 per ounce||72.70%|
|2024||$ 50.63 per ounce||91.67%|
|2025||$ 53.76 per ounce||103.52%|
Since the value of silver has doubled compared to the lows in March, our analysts assume that this could happen again in their silver price forecast for 2021.
While a return to USD 50 per ounce is the current silver price forecast for many analysts, some experts are more likely to assume that the silver outlook will remain in the region of USD 30 (EUR 25) in the next few years.
The Canadian bank CIBC is cautious as prices in 2021 averaged 32 USD (€ 26) per ounce. However, the raw material has developed well since the beginning of the year and, according to experts, could well have even more potential due to the smaller market.
The Bank of America believes that the price of silver in 2021 the price of gold will exceed. The bank announced that its silver price forecast for 2021 averages $ 29.13 an ounce, and prices would rise above $ 31 an ounce.
Michael Widmer, the metals strategist at the bank, said in a forecast for the outlook last month that the outlook for silver remains positive as a new focus on green energy could drive demand for solar panels. After all, silver is a valuable precious metal that plays an important role in sustainable energy.
Metals Focus analysts also see silver prices rising well above $ 30 an ounce next year. However, industrial demand for precious metals will remain a critical issue until the end of 2021.
Although industrial demand will play an important role in the silver market as the global economy begins to recover from the COVID-19 pandemic, some analysts note that investment demand will be just as important over the next few years.
Steve Dunn, Head of Exchange Traded Products at Aberdeen Standard Investments, expects silver to continue to attract investors as it is still relatively undervalued compared to gold. Silver had made good progress, but there is still room for improvement. The silver price forecast up to 2025 now depends heavily on supply and demand.
In a report released for the Silver Institute in October 2020, research firm CRU announced that solar power generation will nearly double by 2025. The company predicts the solar industry will consume an average of 81 million ounces of silver by 2030. The price could therefore chase one all-time high after the next in the next few years.
Analysts predict that the importance of silver in the energy industry will increase in the years to come. They estimate that by 2050, more than 50% of the demand for this metal will be used to generate electricity. However, it remains to be seen how the silver price will develop; even analysts and experts are not clairvoyant.
The forecasts are only a guideline based on the historical development of the silver price. Deviations are highly likely. The forecasts should only be used as a guide to the silver price.
Like most commodities, the price of silver is determined by speculation and supply and demand. Accordingly, the silver price is the market price for the precious metal that arises on commodity exchanges based on the market situation. Silver is mainly quoted in USD.
Accordingly, the silver price is also influenced by other factors, such as the exchange rate of the US dollar, interest rates, oil prices, and the prices of other raw materials and precious metals such as gold or platinum. Further influencing factors on the silver price are inflation, political events or turbulence, speculation and long-term expectations.
The main factors influencing the price of silver are:
supply and demand technology business inflation U.S. dollar gold price politics
The supply and demand for silver are one of the reasons the metal is so valuable: the supply is limited, but the demand is constant. However, the basic economic fact of markets is that any perceived or actual increase or decrease in supply or demand moves prices, which is often disproportionate to the change itself. So, for example, if a strike disrupts mining at a large producer, silver prices can rise in the short term. Likewise, the announcement of a new use of silver, such as solar modules, will lead to more purchases and upward pressure on prices.
Commodities such as gold and silver have long been viewed as safe havens by investors in times of political or economic turmoil. A weakening dollar increases the value of other currencies, which increases the demand for commodities like silver and drives up the price. So when the dollar is weak, the price of raw materials goes up.
During the 2008 financial crash, silver rose from its price on September 6, 2007, of $ 12.24 an ounce to $ 20.22 by March 2008. After a correction, the market hit a 31-year high of $ 48.70 on April 28, 2011. At that time, many commodities rose in value as an improvement in the economy was expected, and the demand for silver increased accordingly. Investors invested their money in silver and gold to hedge against further erosion of the dollar’s purchasing power.
In fact, the silver price collapsed again in the years that followed, with the silver price reaching USD 27.56 on July 1st, 2012. In 2013 the silver price recorded a significant minus of -28.01%. In 2014 the silver price recorded a slight increase of + 0.30%, after which the price fell again by -11.55%. In 2016 and 2017, there was an increase in value of + 8.49% and + 13.11%, with the silver price slumped slightly by -1.69% in 2018.
In recent years, however, silver has clearly caught up. The price rose to + 18.31% in 2019 and to + 24.99 % in 2020 .
After hearing more and more people in early January 2021 about how private investors were declaring war on the large US hedge funds, something similar happened with silver. Social media users like Reddit and Twitter initially have shares in Gamestop, Nokia, AMC and Blackberry to force major investors to close their short sales. Thus the shares of the companies have jumped in the air.
The next price explosion then came thanks to Reddit users for silver. However, the market here is harder to crack than it is for stocks. Silver hit an 8-year all-time high of USD 30.03 per coin on February 1, 2021. This means that the price of silver has risen by over 15% in just one week. After that short squeeze, however, the price of silver fell again, albeit not dramatically.
The current silver price is USD 28.10 per 1 troy ounce (as of May 26, 2021).
In general, silver is considered a safe investment, especially during times of crisis. However, the price of silver is currently quite high, which was triggered by the short squeeze in early January 2021. The price is currently relatively stable as of February 28, 2021, but could fall again due to the current economic crisis.
Nevertheless, an investment in silver is worthwhile because if paper money loses purchasing power, only gold and silver remain as valuable money. In addition, silver is also limited, tradable, and is in great demand in the economy. Therefore, with the help of silver, you can increase your wealth protect your long term.
However, experts also recommend adding gold to your portfolio. Diversification is usually always good if you want to protect your capital. Moreover, since silver is also dependent on the gold price, it is worth investing in both precious metals.
This can be done in the form of physical possession or in the form of stocks, ETFs and CFDs. For example, if you want to invest in companies that produce or process silver, silver stocks or ETFs are the best way to do this. With an ETF, you can also diversify your portfolio further. You can find more about this in our article on buying silver.
It is difficult to predict the price of silver and give a clear and definitive answer as to whether the price of silver will increase in value. Based on our analysis, however, we assume that the silver price forecasts for the coming years are consistently positive, and the silver price has the potential to continue to rise.
However, the year 2020 showed one thing: Despite the Corona crisis and economic and political turbulence, raw materials such as silver were able to gain in value. Silver is still considered a safe investment that many investors use to diversify their portfolios. Although the silver price fell to an 11-year all-time low of USD 11.74 in March 2020 ounce in, it recovered relatively quickly.
However, it is currently impossible to predict to what extent the silver price will move. The silver price forecasts for 2021 are still holding back, as there are currently increasing economic and political uncertainties. Since the corona crisis is still not over, industrial activities related to precious metals mining are limited. The demand for precious metals is also not exceptionally high. For example, low demand can limit silver gains in the short term, but that does not mean that its value will collapse.
Silver is very suitable as an investment, even if there have been price fluctuations over the past few years. In the long term, however, silver turns out to be a good investment because it is not only cheaper than gold but is also a scarce commodity.
However, there are several reasons why investors choose to buy silver. For most investors, silver means a good investment that is crisis-proof. For many, precious metals are a sensible investment when an economic crisis strikes. So it is not surprising that many investors own silver in physical form.
Silver is also valued in uncertain times as a good investment that should protect against inflation. However, since it is cheaper than gold but traded less, silver is more volatile and more liquid. In addition, silver is often bought when there is economic or political turbulence in order to diversify and balance out one’s own portfolio.
It’s also important to note that silver is used to make a wide variety of things – from jewellery to batteries, medical devices, and electronics. It is also used in the solar energy and electric vehicle industries. As these areas expand, many experts believe that the demand for silver will increase in the years to come.
Investing in silver can therefore be a very good opportunity to rely on technological progress and renewable energies.
As mentioned earlier, the price of silver depends on several factors. In most cases, the price of silver falls when there is economic or political turbulence. Also, in March 2020, it was possible to observe how much the silver price collapsed due to the Corona crisis. Supply and demand also play a major role in the price of silver.
You also have to keep in mind that the silver market is far smaller than that for gold. If there is increased demand during a price correction, stocks are often sold out quickly. The corona crisis could ensure that many investors continue to rely on silver in 2021. Against this background, the price of silver could rise again in 2021. However, positive news from the economy, which is causing the stock markets to rise, regularly dampens demand for silver and thus depresses the price of silver.
Along with gold, silver is one of the most popular precious metals to invest in. Silver is considered a lower risk investment than gold but with fewer returns. Silver is currently at a record high, and it does not appear that this will change for the next several months.
After all, the price of silver depends on several factors, supply and demand are crucial. Therefore, the lower the quantity, so to speak, in relation to the purchase wish, the higher the price increases.
However, the price of silver could remain relatively stable as the industry always needs silver. For example, silver is used in smartphones, laptops, TV sets and solar cells. So there will always be an offer of silver.
In the end, everyone has to decide for themselves when is the best time to buy or sell silver. We currently advise buying silver.
If you want to venture into silver coins, there is a consensus about which silver coins are particularly valuable. These would be:
If you want to buy silver coins, paying attention to a high purity content is important. Therefore, it is advisable to purchase 999 silver coins, as these can also be melted down again without any problems. In addition, one should also pay attention to the silver content when purchasing silver coins.
It remains to be seen whether silver coins are a good investment for yourself or not. However, it is important that you also pay attention to the value-added tax that is incurred when buying silver coins. This also applies to gold bars, with silver coins from non-EU countries often having a lower value-added tax.
In general, we advise against buying silver coins as an investment, they should serve as a hedge. We, therefore, advise buying silver in the form of stocks, CFDs or ETFs from ETFinance.
Gold is considered the top dog among precious metals and has been used as a means of payment for thousands of years. Just like gold, silver is also a very good alternative to other assets. However, gold has traditionally been and will be more expensive than silver. Because of the high price, it is sometimes even bought less than silver.
However, gold has seen a steady increase in value over time, with silver comparing itself to be a volatile asset. One should keep this in mind when considering one of the precious metals as an investment. Generally, the price of precious metals is based on the perceived market value. Since gold is generally preferred, it is used more often in jewellery. Accordingly, gold is seen as the traditional monetary alternative.
However, as mentioned earlier, silver is cheaper than gold, it is more accessible than gold to investors. However, as the market for silver is smaller, it is also more prone to change. Therefore, silver is also more volatile than gold.
In short, silver is the more volatile option for investors looking for potentially exponential growth, although, of course, the risks of exponential risk should also be considered. Supply and demand have a much stronger effect on the silver market, either increasing or decreasing the silver price.
However, our silver price forecast shows that silver has a clear potential to turn out to be a cheaper investment than gold. Whether you ultimately choose gold or silver, you have to decide for yourself. Above all, you shouldn’t disregard your own risk management.
Investment experts often advise investing not only in silver but diversified in commodities. Here you can take our test winner ETFinance, which covers all important raw materials – and free of charge!
Silver is one of the most sought-after precious metals there is. However, the silver price forecasts look extremely optimistic for the next few years, as gold and silver could continue to grow.
The silver market is characterized by large movements and high volatility, which is why this market is better suited to “traders with large positions”. In addition, the fact that silver is used far more widely than gold in the industry makes the analysis easier. If you want to trade in silver, you should watch the leading silver exporting countries such as Mexico, China, Peru and Russia. But investors should also look at importing countries such as Canada, Japan and China and keep an eye on their economies.
Ultimately, silver is a speculative asset, especially for the purpose of day trading. The silver price forecasts serve as a guideline, whether and when the best time to get into the silver trade is, every investor must decide for himself. If you are interested in silver, we recommend looking into silver stocks, ETFs and CFDs. Of course, you can also buy the raw material yourself. In any case, we recommend our test winner ETFinance.
Here, you can buy in silver and a huge selection of other raw materials, stocks, cryptocurrencies, and much more. Invest – free of charge. Good luck investing!
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