The silver market is currently enjoying a bull market, with prices continuing to reach new highs. Although these announcements have been well-received by investors, the question of whether silver prices could really hit $100 an ounce is still a hot topic of debate.
A quick glance at historical data shows that the price of silver has been volatile. It hit its all time high of $50 an ounce back in 1980, when it spiked from under $4 an ounce in 1970. Over the years, it has experienced major lows, and has currently stabilized around the $30-$35 per ounce range.
However, some analysts are predicting the price of silver to reach up to $100 per ounce in the next two years, partly driven by a shortage of available supply. According to the World Silver Survey, the global silver market is already in a deficit, thanks to the lack of mine supply. Demand from both the industrial and investor sector has seen an uptick.
In addition, the continued growth of renewable energy continues to boost demand for silver, with the main contributor being the solar panel sector. Silver has been increasingly in demand in this sector as energy storage technologies continue to develop. On the other hand, gold prices had been in a bear market earlier this year, stymying silver’s gains in the coin market.
The silver market is still much smaller than the gold market, and for the price to hit $100 an ounce, it would need significant shifts in the market dynamics. Forecasts on prices hitting this level depend on many factors, with some predicting a possible increase, and some remaining on the fence.
The silver market will undoubtedly remain volatile in the coming years. While the possibility of silver prices hitting $100 an ounce is currently only a prediction, it remains something to watch out for. Investors should do their research and pay attention to market developments. It is important to always do your due diligence and be aware of the risk before investing.
