The Complete Guide to Silver Prices: When the Price will Rise & What to Expect

Silver has been a long-time favourite for investors. However, many investors are wondering, are market conditions favourable for another surge in the price of silver canada?

The price of silver has risen. Only between September 2021 and September 2022 did the price of white metal fluctuate, going from under US$18 per ounce to US$26.50.

Unluckily, it is difficult to predict when silver will increase in price. Even seasoned analysts are unable to predict the future, and there is little agreement regarding the precise timing of when a bear market will end, and a bull market will begin.

Nonetheless, it is possible to find various points of view on the subject.

Predictions for Silver Performance are bullish, bearish and a gradual change.

As previously stated, silver has experienced ups and downs over the last year. It reached a 12-month high in early March, just below US$26.50, but has since gradually declined. At the end of August, silver fell below US$18 for the first time.


Guide to the Gold/Silver Ratio

The gold-to-silver ratio It’s easy: Divide the price of an ounce of gold by the price of an ounce of silver. The resulting figure is the gold / silver ratio.

At its extremes, the ratio is most useful. When the ratio surpassed 80, it indicated that silver was relatively cheap in comparison to gold. The last three times this happened, silver rallied 40%, 300%, and 400%.

Similarly, the three times the gold/silver ratio has fallen below 20, it has coincided with a period when gold was relatively inexpensive in comparison to silver.

Take a simple mathematical equation and track historical prices; this is the best of savvy investment strategy.

Glance of supply and demand for Silver

Geopolitical developments, the global impact of COVID-19, and future Fed rate changes will be key factors to monitor in the coming months.

Silver mining companies have been mining the precious metal at a record rate in recent years. While this is a good sign for the health of the industry, it has also created a supply-and-demand imbalance that has kept the silver price low for an extended period. The biggest producers of silver are Mexico, Peru and China followed by Australia, Chile, Bolivia, United States, Poland, and Russia. Mine output is expected to rise by 2% to 843.2 million ounces in 2022, while global silver supply is expected to rise by 3% to 1,030.3 billion ounces.

On the other hand, Demand for silver has been increasing over the years, with an increasing number of people buying silver jewellery to accumulate wealth. Investor demand for silver bars and coins increased by 36% year on year in 2021.

Physical silver investment (such as silver bullion coins and silver bars) is not expected to grow in 2022. In fact, the year may see slower growth in industrial demand is expected to fall by 1%.

The Hybrid Metal Has Two Catalysts and Two Uses

The industrial demand for silver is only going to increase. One significant factor is the need for silver in many “green” technologies. Compared to internal combustion engines, electric vehicles use almost twice as much silver. It is an integral component in the production of solar panels and LED lights.

However, after industrial use, it is the second-largest source of demand for silver, trailing only jewellery, silverware, and photography. Each year, the demand for silver as an investment varies, sometimes dramatically.

How To Protect Yourself from A Falling Silver Market

If you are investing in silver and believe that the price will fall, you’ll want to short-sell the commodity. This type of investment allows you to profit when the price of silver falls. Investing in a silver ETF is a relatively safe way to short the market. The ETF tracks the price of silver, so if the price falls, you will make a profit. Investing in a futures contract is another option if you believe that silver will fall in price. However, you should watch out for the margin requirements that are associated with short selling.

Conclusion & Takeaways

While supply and demand influence the silver price forecast, investors who buy precious metals as safe-haven assets during times of economic or political uncertainty also have a significant impact. Although it’s nearly impossible to predict market bottoms, now may be a good time to exercise your purchasing power at today’s price.