In recent years, the silver market has garnered increasing attention for its potential to produce impressive returns for investors. Since the beginning of 2019, the price of silver has risen substantially, with some optimistic forecasts suggesting it could reach as high as US$100 per ounce. Up until recently, this projection seemed like an impossible goal. But as of January 2021, the price has been trending strongly in that direction.
The silver market is complex and volatile, due to the fact that it largely follows global economic performance. When the world economy fares well, silver typically holds its value, as demand for the metal increases due to its various applications and investment opportunities. But if market conditions falter, the price can crash with relatively little warning.
Such has been the case in 2021, when optimism over the upcoming recovery from the coronavirus pandemic caused a surge in silver prices. With the expected introduction of fiscal stimulus, commodity markets began to gain traction, driving the silver price higher. Of course, there is no guarantee that the silver price will reach US$100 per ounce, but analysts and investors alike are increasingly optimistic.
Apart from broad market activity, there are other factors which could drive the silver price even higher. Investors have always favoured the metal for its perceived safety and long-term potential. But silver’s use outside of the financial world, such as in electronics and industry, also helps to drive demand. And while the price of silver is affected by both the supply of and demand for the metal, an increasingly limited supply combined with increased demand could result in a significant price surge.
The silver market is one of the most volatile and unpredictable markets out there. Its performance is heavily dependent on the overall economy and a variety of other factors. But if the world reaches the recovery stage of the pandemic and the supply and demand of silver both remain favourable, then the silver price could indeed reach US$100 per ounce. The timeframe for this to happen is currently estimated to be by the end of 2023.
