Silver price forecasts / predictions for 2024-2050

Commodities /
Milan Cutkovic

About price forecasts and predictions

Price predictions help market participants manage price risks, create hedging strategies, and make informed decisions about buying or selling assets in financial markets. That said, price predictions are speculative, particularly when it comes to long-term price forecasts. Therefore, investors should use them as a complementary tool, and not as their primary source of advice to make investment or trading decisions.

 

What is silver and what affects its price?

Together with gold, silver is one of the most popular precious metals. It has been used for many centuries to create coins and jewellery. It has also established itself as a popular investment for investors trying to protect their assets against inflation.

Silver has a long history, having been used as currency in various civilizations, including the Greeks and Romans, who used it extensively for jewellery and utensils. Silver’s importance grew during the 16th and 17th centuries when the Spanish established colonies in South America and operated silver mines with significant output there.

The precious metal also played a key role in the United States during its emergence as a major economic power. The discovery of the Comstock Lode triggered a major boost in silver mining.

Aside from being a major investment instrument, silver today is still used in a variety of industries - from solar panels, jewellery to electrical conductors and medical equipment.

Silver prices are commonly quoted in troy ounces. The LBMA Silver Price is the global benchmark, with the price set each working day at 12:00 GMT. A variety of market participants are involved in this process — from jewellers, producers, and refiners to investment banks and central banks.

Silver is highly sensitive to the movement of the US dollar and US interest rates. Rising interest rates will boost the US dollar and make silver less attractive to investors, as the precious metal is not generating any yield. Silver tends to be in demand during times of risk aversion and is seen as safe haven.

 

Historical price performance

Year

Average price per ounce

1969

$1.80

1979

$11.07

1980

$20.98

1990

$4.83

2000

$4.95

2008

$14.99

2010

$20.19

2020

$20.69

2022

$21.76

2023

$23.96

Silver prices gradually increased in the first three-quarters of the 20th century, with little volatility. In 1980, the precious metal saw a parabolic price increase that was driven by the attempt of the Hunt brothers to influence the market. In 1979, the three brothers started to accumulate significant amounts of silver, which ended with them owning one-third of the world supply not owned by governments.

The price of silver jumped to an all-time high of $50.35 per troy ounce, an increase of more than 700% year-on-year. After prices started to cool down, the Hunt brothers could not meet their margin requirements, which caused panic in the market. A consortium of US banks eventually stepped in to provide the brothers with a line of credit, which also saved several brokerages from bankruptcy.

Silver prices collapsed following the incident, and saw a steady decline in the 1980s, followed by consolidation in the 1990s.

Interest in silver picked up again in the 2000s, with the Great Financial Crisis triggering a rush into safe-haven assets. The precious metal crossed the $20 mark in 2008, for the first time in 28 years. Prices collapsed shortly after but rose rapidly in 2011 as investors were concerned about the eurozone crisis and the massive quantitative easing measures implemented by central banks globally.

Momentum was lost quickly, however, with silver retreating and settling around $15 in 2014, just three years after almost touching the $50 mark again.

Silver regained momentum during the COVID-19 crisis that had investors rushing to safe-haven assets. Since then, it has been consolidating as an increase in interest rates has capped the topside.

 

Silver price forecasts 2024-2050

Price per ounce

Source

2024

2025

2030

2040-2050

Reuters poll

$24.85 * * *

Investing Haven

$34.70 * * *

Capital Economics

$27 * * *

Physical Gold

$27 * * *

JPMorgan

$30 * * *

Commerzbank

$30 * * *

Pictet

$27 * * *

Saxo Bank

$30 * * *

Investing Cube

* $34 - $50 $50 $50+

PricePrediction.net

$35.21 $52.16 $337.82 $20,658

* Price prediction not provided from this source for this year

 

Silver price forecasts 2024

Silver´s performance in 2024 is likely to be heavily affected by geopolitical tensions, such as the US presidential election and monetary policy decisions by the Federal Reserve.

Geopolitical tensions

Geopolitical tensions are likely to remain in the spotlight in 2024 as the war between Russia and Ukraine continues and the risk of a wider conflict in the Middle East increases. Geopolitical tensions tend to drive investors into safe-haven assets, including precious metals like gold and silver. New conflicts or escalations of existing ones could lead to an increase in silver prices.

US presidential election

Most investors like stability and predictability. For example, if Trump defeats Biden in the upcoming presidential election, there could be wide economic implications, particularly when it comes to US foreign policy. With the unpredictability of a second Trump term, investors would likely flock to safe havens until the situation becomes clearer, thus benefiting silver.

Monetary policy decisions

High interest rates make silver less appealing to investors, as the precious metal is not generating any yield. Thus, it is more attractive to investors to just hold cash instead. However, if the US central bank starts cutting rates in 2024, silver will become an attractive investment.

A poll of 30 analysts and traders conducted by Reuters showed that they expect precious metals to appreciate in 2024, driven by conflicts in the Middle East and central banks starting to ease their monetary policy.

The poll predicts a median price of $24.85 per ounce in 2024 for silver.

Source

Investing Haven is predicting that silver will rise to $34.70 in 2024. They note that all leading indicators are bullish, which are the price of gold, the euro (inverse correlation to the US dollar), inflation expectations and the futures market positioning. Investing Haven also pointed out that there are signs that the shortage in the silver market could be intensifying.

Source

Capital Economics is forecasting that silver will perform better in 2024 as industrial demand will rise, reaching the $27 level.

Source

Physical Gold issued a similar forecast predicting that silver will reach $27 in 2024. They cited rising industrial demand and a narrowing of the Gold/Silver ratio as a reason.

Source

US investment bank JP Morgan sees silver reaching $30 by the end of 2024, driven by the Federal Reserve cutting interest rates and falling US yields.

Source

Commerzbank sees silver rising to $30 by the end of 2024. They note that adverse factors such as high-interest rates and weaker investment demand will fade in 2024 and that strong industrial demand will boost prices.

Source

Swiss bank Pictet sees global economic conditions improving in 2024, thus lifting industrial demand for silver. The investment bank prefers silver over gold as an investment for 2024 as they expect that central banks' easing rates and the long-running physical deficit will give the precious metal an advantage. They are predicting that silver will reach $27 in 2024.

Source

Saxo Bank, the Danish bank, sees silver prices hitting the $30 mark in 2024 and the gold-silver ratio to decline to 78.3. They predict an increase in ETF (Exchange Traded Funds) demand, rising demand from central banks and a weaker dollar as the main factors for a price increase.

Source

 

Silver price forecasts 2025 and beyond

Major banks and leading market analysts generally provide only short to medium-term price predictions. Particularly the commodities market is known to be highly volatile and events such as geopolitical tensions or extreme weather conditions can lead to drastic price swings. This volatility makes it difficult to issue long-term price predictions.

That said, silver is generally seen to increase in value over time by most analysts, as investors will continue to seek protection from rising inflation and geopolitical risks. Many analysts also noted that industrial demand will increase, particularly during times of economic expansion.

 

Silver price forecasts 2025

Investing Cube sees silver trading between $34 and $50 in 2025.

Source

Robert Kiyosaki, author of "Rich Dad Poor Dad", sees silver as the "best investment bargain" and predicts that the precious metal will be trading at $500 by 2025.

Source

 

Silver price forecasts 2030

The Minerals Council of Australia did not issue a particular price range but expects silver prices to rise towards 2030. They note that demand for silver will grow as highly populated emerging economies are creating new markets for consumer electronics. They also mention that silver is heavily used in solar PV cell production, another growth market.

Source

PricePrediction.net, which uses a deep artificial intelligence-assisted tool, predicts that silver will be trading at an average price of $337.82 by 2030.

Source

 

Silver price forecasts 2040

Investing Cube sees silver trading above its 2011 all-time high of $50 by 2030. For 2040, they note that silver could comfortably trade above $50.

Source

 

Silver price forecasts 2050

Due to the high volatility of commodities, price forecasts going up to the year 2050 are rare. That said, most analysts share a bullish long-term outlook on silver.

Reda Farran noted in his post on Finimize that a study forecasts that the solar sector could potentially exhaust 85 % to 98 % of global silver reserves by 2050. A shortage could lead to a significant price increase.

Source

 

Conclusion 

The majority of analysts predict that the price of silver will rise in the coming years. In the short-term, silver could benefit from a less restrictive monetary policy by the Federal Reserve, ongoing political tensions and uncertainty surrounding the US presidential election. In the medium to long term, many analysts see industrial demand for silver rising rapidly, which could lead to shortages and an increase in price. 

 

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References to forecasts and past performance are not reliable indicators of future results.

The images shown are for illustration purposes only. Data is sourced from third-party providers.

This information is for educational purposes only and is not intended to be financial product advice or any investment recommendation. It is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any trading strategy. It has been prepared without taking your objectives, financial situation and needs into account. Axi makes no representation and assumes no liability with regard to the accuracy and completeness of the content in this publication. Readers should seek their own advice.



Milan Cutkovic

Milan Cutkovic

Milan Cutkovic has over eight years of experience in trading and market analysis across forex, indices, commodities, and stocks. He was one of the first traders accepted into the Axi Select programme which identifies highly talented traders and assists them with professional development.

As well as being a trader, Milan writes daily analysis for the Axi community, using his extensive knowledge of financial markets to provide unique insights and commentary. He is passionate about helping others become more successful in their trading and shares his skills by contributing to comprehensive trading eBooks and regularly publishing educational articles on the Axi blog, His work is frequently quoted in leading international newspapers and media portals.

Milan is frequently quoted and mentioned in many financial publications, including Yahoo Finance, Business Insider, Barrons, CNN, Reuters, New York Post, and MarketWatch.

Find him on: LinkedIn


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