Silver is currently experiencing a robust bull market, having surpassed gold’s performance by approximately 6% year-to-date (YTD). As of this writing, the precious metal is priced at $34.45 per ounce, marking a 12-year peak.
Nonetheless, we remain significantly distant from silver’s historical peak of $49.95, achieved in 1980. It is important to note that this spike was largely attributed to market manipulation. The highest legitimate price, however, was $46.47 in 2011, which is 34.89% above the current trading rate.
In light of this unprecedented rally, investors are questioning whether silver prices possess sufficient momentum and potential for further growth. Robert Kiyosaki, the well-known author of ‘Rich Dad Poor Dad,’ has recently urged investors to take long positions on silver before opportunities diminish.
Kiyosaki predicts that it is merely a matter of time until prices achieve a new all-time high of $50. He is not alone in this belief; the precious metals forecasting platform Gold Predictor and seasoned trader Bob Loukas have also presented similar forecasts recently.
Macroeconomic conditions favor silver either way
Silver, much like its illustrious counterpart, is recognized as both a hedge against inflation and a reliable store of value. Although inflation rates may be declining, this is unlikely to halt the ongoing bull run.
Here’s why silver stands to gain, regardless of fluctuations in the macroeconomic landscape. In the event of a recession, the shiny metal’s characteristics as a store of value and hedge would bolster its prices. Conversely, if a recession does not materialize, the impressive returns silver has yielded over the last two years will likely continue to draw in new investors eager for profits.
Furthermore, investing in silver has become more accessible than ever, even for retail investors. Although purchasing bullion may remain impractical for some, the iShares Silver Trust (NYSE: SLV) ETF, which has risen 43.67% year-to-date (YTD), provides an easily accessible means of reflecting silver spot prices.
The demand for silver shows steady growth
Silver’s unique dual function as both an industrial commodity and a store of value is likely to be a significant advantage. The argument for silver as an investment has already been established, but the case for its industrial applications is equally compelling—especially as the global transition to sustainable practices accelerates.
Projected global demand for silver, driven by industrial photovoltaic usage, is anticipated to hit 1.2 billion ounces in 2024, according to The Silver Institute — marking the second-highest level on record. Mining output is expected to increase by 4 percent; while total global supply is predicted to grow by 3 percent, the metal is still expected to remain in deficit—indicating four consecutive years of demand outpacing supply.
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