Since the beginning of time, silver, recognized as a precious metal, has carried inherent value. Its broad applications in numerous sectors, from industrial manufacturing to medicine, jewelry and even photography, have cemented its central role in global trade. Recently, the buzz around the silver market indicates a potential massive surge in the price per ounce to a whopping $100. With the present state of the economy, could this really come to pass?
The recent 2021 crash of the stock market that saw several stocks tumble significantly in value sent many investors in search of safe investment tools untouched by current stock market volatility. Among such alternative investment tools, silver stands tall. The primary factor inspiring this trend is the Return on Investment (ROI) that silver offers. With the promise of higher returns and the potential to safeguard investment portfolios against economic downturns, a surge in the demand for silver is likely.
Let us consider the factors that could drive silver prices to $100 per ounce.
1. Industrial Demand: Silver is known for its wide range of applications in various industries. This metal is used in diverse sectors like renewable energy, electronics, medicine, automotive, and even clothing manufacturing, to name just a few. As breakthroughs occur and advancements are made in these industries, the demand for silver is likely to rise, thus pushing up the price.
2. Investment Demand: The upswing in the awareness and understanding of financial instruments amongst the populace has heralded a significant rise in that section of the market which demands silver as an investment tool. More people are now looking at silver as viable savings and retirement options. The increased competition thus puts pressure on silver prices, potentially causing them to soar.
3. Monetary Policies: Quantitative easing and low-interest rates adopted by numerous countries can also impact the price of silver. These monetary policies tend to devalue a nation’s currency and push investors to hedge their portfolios with silver.
4. Demand and Supply Gap: Various reports point towards a situation where silver’s demand outstripping its supply. This, of course, creates a price surge since its availability would become limited over time.
5. Silver’s Historical Performance: Over the last five decades, silver prices have shown a substantial increase. Between 2010 and 2011, silver prices nearly hit $50 per ounce. This pattern of silver’s price performance gives credence to the possibility of it hitting $100 per ounce.
In global finance, accurate predictions are not always possible. Nevertheless, the continuous rise in demand for silver against its limited supply, coupled with its historical performance, paints a picture of potential price surges in the coming years.
To reach the $100 per ounce mark, however, there would need to be a perfect alignment of the aspects discussed. This includes significant growth in industrial and investment demands and specific monetary policies. If these elements combine harmoniously, the probability of silver achieving this new high becomes increasingly likely.
Please note this information is not to be taken as investment advice. Each investor should carry out their due diligence and consult with a professional adviser before making any investment decisions.