People often wonder: “Will Silver Ever Reach $100 an Ounce?” Because commodities markets are so volatile and precious metals are so appealing, this question piques the interest of investors and enthusiasts.
Silver is chosen in various technologies and industries due to its high electrical and thermal conductivity, as well as excellent reflectivity. Most importantly, investors appreciate silver in tangible bullion forms.
Silver's unique properties drive its high demand:
Some metals like gold, silver, and copper carry electricity better than others.
Silver has a distinctive crystal structure and one valance electron because of which it is among the most conductive metals known to man.
Contacts, mirrors, and conductors coated with silver have low contact wear resistance and high reflectivity, making them perfect for telecom applications.
Among all pure metals, silver's thermal conductivity is the highest. It conducts heat at 429 W/m·K. Due to its significant electrical conductivity and outstanding thermal characteristics, silver is a perfect metal for a wide range of thermal regulation and electronic uses.
Generally, silver is used for plating due to its strength, heat absorption, corrosion resistance, and comparatively low cost to gold.
Due to its affordability, it’s more convenient to use in plating coins and decorative items like tableware and jewelry for aesthetic appeal.
Behind silver’s great allure and value lies a particularly useful secret: it has the strongest association with antimicrobial activity among other metals. From bandages, ointments, and catheters, silver is used in many such medical products.
Infections on wounds treated with nanocrystalline silver may be cured in a short time, according to a 2019 meta-analysis of high-quality research.
Silver, like gold, is a highly malleable and ductile metal. This means it can be made in any shape or size, drawn in wire or flat, thin sheet without even breaking it!
If a certain high pressure is applied to silver, it can take any form we want. This fact is crucial because it enhances the versatility of silver and has a major influence on its price.
Silver is essential to the formation of formaldehyde and ethylene oxide due to its chemical characteristics. After usage, silver is nearly totally restored since the reaction does not affect it. It means, that many commonplace items you use in your daily life are made using silver as a catalyst.Will Silver Hit $100 an Ounce? Price Analysis from 2001 to 2024
Today's silver spot price has made significant gains in recent years, reaching nearly $32 per ounce in May 2024 - its highest level in over a decade.
Let’s check out silver price trends from the beginning of 1990s to today:
1990s: It was trading around $5 to $7 due to reduced demand and a lack of investor’s interest.
2000s: Price started breaking out in 2001 and reached $15 in 2006 due to economic uncertainty.
2008: Financial crises and investor’s trust in tangible metals drove the silver price to around $20/oz between the years 2007 to 2008.
2011: Risk aversion, central bank quantitative easing, and increasing inflation drove silver prices to over $50 per ounce.
2024: Silver prices are approx. $30 as of July 2024, up 29% this year till now due to industrial demand, specifically from green technology, and international conflicts.
The chart below explains the global demand for silver by end-use sectors in 2022.
The electrical and electronics industry accounted for 371.5 million ounces, while bar and coin investments used 332.9 million ounces, and jewelry used 234.1 million ounces.
An impressive 1,242.4 million ounces were consumed in 2022 alone.
This data shows the possible drive of silver prices to reach $100.
As per Stanford's report, the depletion of non-renewable energy resources, such as coal, oil, and gas, might push the price of silver above $100/oz and cause price increases in many sectors.
Considering the current economic and political climate and the impending shift towards energy from green sources, silver's relative scarcity may make it an attractive investment option.
If renewable energies, electric automobiles, or such hi-techs continue to experience substantial development, there could be a significant increase in commercial silver demand.
According to the International Energy Agency’s (IEA) latest Global EV Outlook 2024 report, electric car sales reached a record 10M+ in 2022, up nearly 10x in 5 years. In 2023, worldwide sales of electric vehicles totaled 14.2 million, primarily 95% coming from China, Europe, and the United States. This represents a 35% jump and comprised 10 million BEVs and 4.2 million PHEVs/EREVs. The first quarter of 2024, electric automobile sales surpassed 2023's same period.
Given the current surge in demand, it is possible that shortages of inventory may occur, causing silver prices to skyrocket to $100 per ounce or possibly higher. When high-tech energy uses expand swiftly, this is probable.
According to Carbon Credits, projects mining lead, zinc, copper, or gold often provide silver as a byproduct, accounting for roughly 80 percent of the world's silver resource. There are worries concerning possible scarcity in the future due to demand for supplies.
By 2050, the solar industry could have used up 85–98% of the world's silver supplies, according to research done by the University of New South Wales.
Experts predict that the world's silver market would see an intensifying supply gap in 2024, with a predicted 17% rise to 215.3 million oz. This will increase silver demand by at least 2% worldwide in 2024 alone.
However, the correlation between the deficit of silver supply and silver price is a complex game, so one must check the overall silver price factors mentioned in this article.
Let’s try to answer more precisely: Will silver ever reach $100 an ounce?
According to coinpriceforecast.com, silver prices will hit $40 by the end of 2024 and increase to $50 in the mid 2025.
It will rise up to $80 by 2028, putting it on pace to reach $100 by 2030.
Between 2031 and 2035, it will rise from $89 to $118, almost 33% higher!
We have discussed multiple facets of silver and its price trends in the coming years. Given these considerations, a $100 silver per ounce price is not difficult to hit. This is not an overnight game, yet technology trends, inclination to renewable energy uses, highly fluctuating market dynamics due to geo-political conflicts and economic uncertainties will surely take silver prices to peak.
Though several experts and analysts have reasonably forecast silver prices, the future price of silver is fundamentally speculative due to many variables at play.
So, will silver ever reach $100 an ounce? Investors must stay informed on the latest trends and current silver prices and consider short term plus long term approaches when making investment decisions.
Whether silver reaches $100 or not, it will continue to be the precious component in your portfolio towards hedging against inflation, offering potential growth opportunities!
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