The price of silver has reached a new high, reaching an all-time high of $18.74 on August 14th which set the record for the highest price that silver has ever reached. Silver has risen 73.3% year to date (YTD) and continues to climb at an accelerating rate. Silver is currently trading at its highest point in almost two years and many analysts believe that it could continue rising even higher.
Due to supply constraints and growing demand from industry, pawn shops, investors, jewelers and other silver users, silver prices have risen significantly over the past couple of decades. In fact, since 1990 the price of silver has increased by almost 50%. However, there’s been some debate about whether or not the recent spike in prices will be sustained over the long term or not. One thing is for sure, we haven’t seen anything like it before especially with how quickly silver has surged in value this time around – it’s almost unprecedented! This is one reason why many analysts believe that we will see $100 per ounce of silver within the next five to 10 years if not sooner. Let’s take a deeper look at why they are saying this and see if it makes any sense…
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What’s Driving Up Silver Prices?
There are a number of factors that are driving up the price of silver which include:
1. The growing demand for silver as jewelry, industrial items and in other industries
2. The declining supply of silver which is the result of mining companies producing less and less
3. Price inflation
4. Increased attention on silver as a commodity investment
5. Increasing global demand for silver
6. Declining stock prices
Supply Constraints Will Keep Driving Silver Prices Higher
In order to understand why the analysts are saying they think silver prices are going to hit $100 per ounce, we need a little background on how the market works.
Silver is currently under significant supply constraints in the global marketplace. One of the reasons for this is that a lot of mines are reaching their end of life, or their production has already been used up. This can be partially attributed to the fact that many mines have become more expensive as technology has improved and new technologies have been developed.
We’ve also seen a huge increase in demand from industry including pawn shops, investors, jewelers and other silver users. With increasing demand comes increased investment and new technologies which both drive up prices significantly due to reduced supply. Essentially, increasing demand for silver will create higher prices for investors who need it for their industrial purposes and those who want to invest in it as an alternative asset class. These factors have led some analysts and experts to believe that we may see $100 per ounce at some point in the near future…
Digital Currency Interest Will Drive Silver Demand
As more digital currencies are introduced and start to gain popularity, many analysts predict that this will drive demand for more silver.
Currently, Bitcoin is the most popular digital currency on the market and it has gained incredible traction in recent years. As the price of Bitcoin continues to surge higher and higher, many people have begun to invest in it in order to reap the returns from this cryptocurrency. With increased interest from investors and public, we are likely to see a spike in demand for gold and silver as there is a correlation between these two precious metals and cryptocurrencies. As mentioned before, there have been very few occurrences where silver prices have reached almost $100 an ounce so if you’re thinking about acquiring some now would be the time!
Silver Will Become An Investment Asset And Trade At A Premium
Silver has historically been a commodity like gold. However, there are signs that it will become much more valuable than the precious metal in the future. The main reason for this is because silver is becoming an investment asset which means the price of silver will increase as companies and investors take notice. If you look at historical data and how the price of silver has increased over time, it is clear that silver prices have increased steadily year after year and when they have reached their peak, they have always done so again. Analysts believe that this trend will continue as long as demand remains high.
If you’re interested in investing in silver, now is probably a good time to get into it because it offers an opportunity for significant returns on your investment with increases in value expected over the next few years. Silver is a great investment option for those who want to diversify their portfolio and get access to a small physical trade with tax-advantages and flexibility.
Final Thoughts
The current price of silver is just the beginning. Considering the market is so young, silver has a lot of room to grow. The price of silver can touch $100 per ounce within the next 5-10 years if not sooner. The global jewelry industry alone has a worth of approximately $700 billion and it shows no signs of slowing down in its demand for silver. In fact, sales are increasing dramatically with every passing year even though prices have been rising significantly. If you’re looking to invest in silver, there’s never been a better time than now!
FAQ’s
What is the cause of silver’s recent increase in price?
The primary driver of silver’s price is expected to be industrial demand. The use of silver in photovoltaic solar panels, medical devices, and energy saving light bulbs is projected to expand significantly over the course of the next few years. Furthermore, global silver demand is projected to reach 383 million ounces (MMoz) in 2017, up from 365 MMoz in 2016. In addition, China’s industrialization means that raw silver is used increasingly for fabrication and paperwork. This demand will lead to a rising number of fabricated silver products as well as contracts for fabrication/synthesis of products that utilize silver. The price of silver may continue increasing due to China’s economic development and purchase of silver from Miners and Traders.
What are the benefits of using silver?
Benefits of using silver include its ability to conduct electricity, antimicrobial properties, thermal conductivity and its unique electrical and optical properties. Beyond these benefits, silver is a popular choice for use in mortuary products due sa its expected scarcity, antibacterial, antifungal and anti-stain characteristics and its ability to safely hold human remains.
What are the consequences of not using silver?
The price of silver has reached a new high, reaching an all-time high of $18.74 on August 14th which set the record for the highest price that silver has ever reached.
The price of silver has risen 73.3% year to date (YTD) and continues to climb at an accelerating rate.
Silver is currently trading at its highest point in almost two years and many analysts believe that it could continue rising even higher.
The record price in 2016 was $19.07, which is the highest price that the American public had ever seen before the May 2017 Pre-Market rally. At this time, prices had soared 113% from their lows in February 2016. Many analysts believe that silver could easily hit $25 by the end of 2017 and could reach as high as $35 by the end of 2018. This would be a new all-time high high in silver’s history and would surpass 2015’s record if it were to happen.
