Will Silver Go Up Soon in 2021? Silver Prices Forecast
The precious metal silver reached $29.37 USD at one point in 2020 and is seeing a lot of movement in 2021. Some investors are missing out on these quick price increases for silver and other precious bullion as they increase in value. Our price forecast silver's move in price this year.
This Year's Silver Price Forecast For Investors
Based on the current global market crisis due to COVID-19, silver is looking to be heading up or remaining steady for the year 2021. As global economies struggle to recover, bullion has begun to increase in value.
Don't forget, silver is also a reliable long-term investment for those looking to diversify their investment portfolio for years to come. In our yearly analysis, we will go over whether silver will go up or down in the future.
With gold reaching over $1,800.00 USD, the price tends to follow along at a similar rate in the long run. Silver has been priced at over with some recent significant increases in the price on Wall Street. Here are some key factors to help you better understand whether this is a reliable investment in the coming months. Factors including demand, market uncertainty, and recent economic & political events.
Why Would the Price Go Up This Year?
Top Reasons Why the Price of Silver Increases
- Growth in industrial uses in the economy.
- Silver's close price pairing with gold.
- Silver as a traditional inflation hedge.
- Popular choice during global and economic instability.
Demand in a Financial Crisis = High Prices
The popularity of silver has been growing greatly over the years in both industrial and jewelry production. Over the past decades, bullion popularity has grown 20 percent. India has now become the greatest silver consumer since 2017. The economy for silver is one reason investors are choosing silver as a solution for their trading portfolio.
The global stock market has also been seeing movement in prices. Investors are jumping at mining stocks to expand their stock portfolios. Despite the disease-threatened global economy, recovery is still eventually going to occur. This is why most active stocks are one of many stock gainers. While buyers are moving their currencies to stocks, this is only seen as a short gain. Buying stocks is one part of the pie in your investment portfolio.
Silver's Prices Compared With Gold, Platinum, and Palladium
When looking at the price charts for bullion, you will notice that base metals, for the most part, follow the same trends. This is different in comparison when it comes to the stock market crash where gold is secure against a U.S. Dollar Bubble popping. The USD and overall global economy are facing hardship in recent times. Relying on a good economy and strong USD in the long-term is a risky move with your money.
If you view the latest price charts for gold or silver in USD, you will see that they both have a strong relation. This is called the gold-silver ratio and is worth the cash costs and pay for themselves in their store of value. With the gold price going up, silver will end up tagging along in the markets in comparison based on the historical markets.
Silver Hedge Against Inflation: Your Portfolio Insurance of Choice
A diverse portfolio is a smart investment decision in any economy. Silver plays a part in this diversification by acting as a hedge against the inflation rates each year. By placing a percentage such as 5% into silver, you can have the bullion as a form of insurance on your portfolio. In the chart below you can see the latest rates in the United States for the USD.
"The current silver to gold ratio of 80 to 1 is absolutely unsustainable in a world. Where physical silver is being mined globally at a rate of 10 ounces of silver for every ONE ounce of gold." - CEO, First Majestic Silver
A crucial final driver for silver's resiliency during economic hard times is the fact that it is accessible. Unlike gold which can be quite expensive, silver is much cheaper. You can watch Peter Schiff talk about the "powerful case of silver" featured here.
Considering the Best Options when Shopping For Bullion
You may be considering which type of investment-grade silver to purchase as an investment. Our analysis on the best type of silver covers coins, bars, and other variations in comparison.
Investment Demand: The Result of Price Fluctuations
Some precious metals investors flock into this bullion for the silver ratio at different levels. This can result in a percentage basis, a higher rate of appreciation than with gold. Since gold is more inaccessible due to its price, it is easier to ride percentage price volatility with silver. In other words, you get more bang for your investment buck with silver because it's more accessible compared to gold.
An example of this type of price spike in time is what happened in the 80s. Also known as Silver Thursday when speculators attempted to corner the silver market.
The Price of Silver in the Past Five Years
Below is the most recent move in changes for the price of silver over the past five years from September 2014 to September 2019. Prices are in USD.
Adding This Bullion to Your Portfolio in 2020
If you haven't already, consider an investment in silver, whether that be the best coins, bars, or a silver IRA. Diversifying in other items instead of stocks can help protect your assets during the uncertain economy ahead. Consider investment-grade bullion from reliable dealers. Local stores or online stores are usually available for these vendors. If you do not decide to go with a custodian, you can learn more about the best techniques when keeping your silver bars safe.
Options when purchasing:
- Silver Coins (American Eagle, Canadian Maple Leaf, Australian Koala)
- Silver Bars (10 ounces, 100oz, etc.)
- Rollover for Retirement (Either by your IRA, 401(k), TSP, SIPP, or RRSP)
Summary: Will Silver Go Up Anytime Soon?
Even a small percentage of your investments going toward silver & gold bullion can be a small nest egg for the decades to come. This can help avoid unnecessary risk and get the value of the strength of silver.
Learn more about doing business with one of the top-rated bullion custodians before the price spikes again. Wondering what type of silver to buy? Our silver analysis on the best silver bullion will help you make the right choice.