Silver Price Forecasts & Predictions

The latest silver price forecasts, predictions and analysis of trends in the silver market.

Silver Price Now: $23.34 USD
Recent Changes
Period 2 Days 3 Days 1 Week 2 Weeks 1 Month
Change,% +0.48% -0.19% -3.45% -3.69% -4.15%

Latest Silver Forecasts

silver coins

Silver prices rose nearly 163% from its Coronavirus-panic lows of $11.30 to its peak on August 6 of $29.82. However, following that incredible rise, silver has since fallen dramatically: from its August 6 peak down to its September 23 low of $21.64 is a drop of nearly 28% in just six weeks. As this article is going to press, the precious metal is trading in the middle region of that range at $24.50.

What is ahead for silver? Is this sell-off over, or is there more downside to come?

Our analysis suggests that silver is within the midst of a wide and volatile consolidation that will resolve upward within the next several months. Keep reading to learn why we expect silver to move above $30 per ounce into 2021.

Silver Investors: Keep One Eye on Gold

As precious metals investors, we have a unique benefit in our analysis toolbox in that we can compare two historic monetary metals to each other: silver and gold. Yes, both metals have served as stores of value for the last 5,000 years. And while the focus of this article will be on the silver price forecast, we should use our knowledge of gold in order to increase our understanding of its wilder cousin.

The important point to understand about gold is that it is currently retesting its breakout above its former all-time high resistance zone, which dates back to 2011 – 2012. This resistance zone existed between $1,800 and $1,920 (black). Note that after gold broke out in early 2020 (red callout), it subsequently made a new higher peak than in 2011 ($2,074).

Gold is now coming back into the resistance zone to retest that zone.

A retest is a process whereby sellers are daring buyers to show up again as they did during a breakout. The general rule in technical analysis is: “Breakouts should be respected until proven otherwise.” Thus, we should expect buyers to show up again now that the price is back into the former zone where the breakout first occurred.

This analysis suggests that downside is limited for gold here, as...

silver price analysis

For years, silver was regarded as just an alternative to gold. However, in recent months, the white metal started to shine closely towards gold. With all the investment stress revolving around the latest surge of COVID-19 cases, the U.S. Presidential race, and the predicted slow recovery of the economy, silver prices can get even a lot stronger soon.

Keeping pace with the global events, silver stayed behind gold for years. But things have changed recently. Since the coronavirus tumbled both global health and the economy, safe-haven alternatives started to become attractive again in a time of crisis. Consequently, gold started its strong rise which resulted in a record price back in August, and white metal did an excellent job as well.

We’re all familiar with how gold is being used throughout the world as a prime precious metal. However, silver is so much more than a monetary asset and material for wedding rings. It is arguably one of the most significant industrial metals. But is silver only important as an industrial metal?

It is not only an industrial metal, and not just any industrial metal, for that matter. It has served as money for centuries, much longer than the fiat currencies have been used. Its specific properties are also widely used in many industries (best conductor of heat and electricity), and perhaps the only more versatile commodity than silver is crude oil.

The first verse of the Correlation Matrix shows just how closely silver moves along with gold – the flagship monetary metal. The link is not particularly strong in the long run, but it is still strong enough despite that.

And what about the link with copper – which we’ll use as a proxy for the...

Silver Price Forecast FAQ

What are the key factors that influence silver price forecasts?

  • Current economic conditions
  • Strength of the US dollar
  • Gold/silver price ratio
  • US monetary policy
  • Geopolitical events
  • Industrial demand
  • Jewelry and silverware demand
  • Silver supply & mining costs

Do silver price forecasts apply to all countries?

The price of silver remains mostly the same regardless of which country you are in. This is because the price of silver is pegged to the US dollar. Therefore an accurate silver price prediction will similarly apply to silver prices in all countries.

How does the strength of the US dollar impact silver prices?

In general silver has an inverse relationship to the US dollar. When the dollar becomes weaker, silver prices tend to go up. This is why the state of the economy and central bank monetary policy play such an important role in forecasting silver prices.

How is the gold/silver ratio used to evaluate future silver prices?

The gold-to-silver ratio is used to determine how many ounces of silver it takes to buy an ounce of gold. When this ratio is under 40, silver is determined to be overvalued. When this ratio is over 75, the price of silver is considered undervalued and therefore may be a good time to buy.

The gold/silver ratio is higher now (over 90) since the 2008 financial crisis. It is not surprising, therefore, why so many silver price forecasts are predicting a historic rally in silver prices. It is when this ratio reverses that silver prices take off and outperform gold.

Is silver too volatile for the average investor?

Silver goes through periods of volatile ups and downs but also periods of quiet just like other commodities. Silver does, however, have a history of being much more volatile than gold. This is due to its much smaller market and lower market liquidity. Those investing in silver should therefore be prepared for this volatility. The most important focus when investing in silver should not be the short-term but longer-term trends and forecasts.

Can I hold silver in an IRA account?

Silver, and gold, can be held in an IRA account. However, be sure to first reach out to a reputable broker, understand the guidelines, and be sure to use an approved depository. This can be an excellent strategy for protecting your retirement from a volatile economy.

What is the highest price silver has ever reached?

Silver reached $48.70 per ounce on April 28, 2011. This is the highest price silver has ever reached.

2020 Silver Price Forecasts

Goldman Sachs $21 per ounce
Metals Focus $20
Bank of Montreal $18.60 avg
LBMA survey $18.21 avg
Commerzbank $18.50
Silver Institute $18.40
Degussa $23
Thomas Reuters $17.50
World Bank $17
Economy Forecast Agency $22.30
Wallet Investor $18.26
BMO $17.7 avg

2021 Silver Price Forecasts

Goldman Sachs $22 by June 2021
BMO $18
InvestingHaven $28

Long-Term Silver Forecasts

Gov Capital - $86.26 by 2024
Jason Hamlin (GoldStockBull) - $169 by2025
Kent Neumeyer, First Majestic Silver CEO -$130 long term
David Morgan (Morgan report) - 3 digitprices “in the next few years”
Silver has the highest electrical conductivity and heat of all metals.

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