Silver Price Forecasts & Predictions

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

Silver Price Now: $25.47 USD
Recent Changes
Period 2 Days 3 Days 1 Week 2 Weeks 1 Month
Change,% 0.00% -0.46% +2.53% +3.20% -1.32%

Latest Silver Forecasts

fine silver

From the panic low of the Coronavirus scare last March when silver bottomed at $11.30 to its inflation-induced peak at $29.82 in August, silver prices rose an incredible 163% during 2020 in less than five months. Yet as this article is going to press the day of the US inauguration, silver is trading just above $25.50 per ounce. In other words, since the August peak, silver has done nothing but fall by 15% over the last five months.

So what is ahead for silver as 2021 gets underway? Was the advance of the first half of 2020 a sign of things to come? Or is silver set to continue declining as it has done since the peak last August?

Silver 2021: First-Half Lower Volatility

Silver is shaping up to have a less-volatile first half of the year than it did in 2020, before a strong continuation advance develops as the second-half of the year approaches. Below we show the spot silver price from 2020 through 2021:

  • Silver is currently in a trendless state. Note how both the rising trend from April 2020 (turquoise double lines), and the declining trend from the August 2020 peak (turquoise line) have both been broken. The breaking of both a rising and declining trend shows us that neither buyers nor sellers are currently in control of the silver price.
  • When no active trend exists in a market, we must observe at what other support or resistance levels silver participants are buying and selling.
  • Note that buyers have shown up on three occasions since September 2020 between $21.65 - $22.55 (black support). This level should continue to see buyers emerge unless proven otherwise.
  • Note that sellers have shown up on at least six occasions above $27.40 (black resistance). This resistance level should continue to see sellers emerge unless proven otherwise.
  • In sum, we have...

silver coins

Silver is like gold’s cheaper and more volatile little brother. The smaller market size of the white metal relative to gold makes it susceptible to wilder price swings. So how has it been performing relative to gold’s corrective actions since November? And finally, where do the miners stand in all this?

The entire precious metals sector moved higher on Tuesday, and one might wonder if this changes anything regarding the outlook. In short, it doesn’t. The move higher was in line with what I previously described as a likely outcome.

It was quite possible for gold to rally up to its September lows, and the low in gold futures in terms of the closing prices was $1,866.30. Yesterday’s closing price for gold futures was exactly $1,866.

So, did anything unusual happen? Not really.

Looking briefly at gold, can it move even higher from here? As discouraging (or encouraging, depending on one’s perspective) as this answer may be, it’s a “yes”. The US Dollar Index is currently trading at about 90.8, and its downside target is at about 90, so there is room for another short-term slide. Such a slide would be likely to trigger a rally in the yellow metal. How high could the rally go during this final part of the counter-trend corrective upswing?

Perhaps to the mid-November high of about $1,900. Even though gold might theoretically rally all the way up to the early-November high, I don’t see this as being likely.

At the moment of writing these words, gold has corrected more or less half of its November decline. Did silver correct as much?

Actually, silver corrected visibly more. Its already at its mid-November highs and relatively...

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”
Peru became the world’s largest producer of silver in 2012.

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