Will Silver Go Up? Price Forecast For Silver in the Next Year
Some investors are missing out on these price increases for silver and other precious bullion. Our silver price forecast covers some reasons why silver may increase in value.
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This Year's Silver Price Forecast For Investors
As the world recovers from COVID-19, silver is seeing a steady increase in demand. As global economies struggle to recover, bullion has increased in value.
Silver is a reliable long-term investment for those looking to diversify their investment portfolio. Our yearly analysis will cover whether silver will go up or down in the future.
With gold reaching over $1,700, the price tends to follow at a similar rate. Silver has been priced at over $19, with some recent significant increases in Wall Street prices. Below are factors to help you understand if silver is a reliable investment. Factors include silver's 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 is 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 over the years in 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 choose silver as a solution for their portfolio.
The 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 slowly occurring. While buyers move their currencies to stocks, this is only a short gain. Buying stocks is one part of the pie in your investment portfolio.
Continue reading: Differences Between Gold and Gold Mining Stocks
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. These charts differ from the stock market crash, where gold is secure against a U.S. Dollar Bubble popping. The USD and the overall global economy have been facing hardship. Relying on a good economy and strong dollar in the long term is a risky move with your money.
If you view the latest price charts for gold or silver, you will see that they both strongly relate. It is known as the gold-silver ratio. With the gold price going up, silver will end up tagging along in the markets based on the historical markets.
Silver Hedge Against Inflation: Your Portfolio Insurance of Choice
A diverse portfolio is a wise investment decision. Silver plays a part in this diversification by acting as a hedge against inflation. You can diversify your portfolio by placing a percentage, such as 5%, into silver.
A crucial 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.
"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
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 of the best kind of silver covers coins, bars, and other variations in comparison.
Investment Demand: The Result of Price Fluctuations
Some precious metals investors flock to silver bullion for the silver ratio at different levels. Its popularity can result in a percentage basis and a higher appreciation rate than 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.
Adding Silver Bullion to Your Portfolio
If you haven't already, consider an investment in silver, whether that be the best coins, bars, or a silver IRA. Diversifying into other items instead of stocks can help protect your assets during the uncertain economy ahead.
Consider silver 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 reasons why to stack silver each year.
Options when purchasing:
- Silver Coins (American Eagle, Canadian Maple Leaf, Australian Koala)
- Silver Bars (10 ounces, 100oz, etc.)
- Silver Rollover for Retirement (Adding silver either by your IRA, 401(k), or TSP)
Summary: Will Silver Go Up Any Time Soon?
With countries recovering and economies starting back up, silver's demand and value will continue to increase into the future. A small percentage of your investments going toward silver & gold bullion can be a small nest egg for the future. Diversification can help avoid unnecessary risk and get the value of silver. Before you buy silver bullion, consider the silver mints that offer these quality products.
Learn more about doing business with one of the top-rated bullion custodians before the price spikes again. Are you wondering what type of silver to buy? Our silver analysis of the best types of silver bullion will help you make the right choice.
- Best Types of Silver to Buy & Invest In
- Investing in Junk Silver Coins: Top-to-Bottom Analysis
- Silver Bullion Vs. Junk Silver
- Silver Rounds Vs. Silver Bars
- Silver Coins Vs. Silver Rounds
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Disclaimer: Content on this website is not intended to be used as financial advice. It is not to be used as a recommendation to buy, sell, or trade an asset that requires a licensed broker. Consult a financial advisor.