Silver price projections until 2020

silver price today per ounce

Silver is a precious, but relatively inexpensive metal that is used in various industries and jewelry. Not many investors decide to use it as an asset (a means of saving finances) because its value in comparison with gold or platinum is considered extremely low, but a huge number of people are still interested in silver price prediction 2020.

Silver is an amazing metal, which has unique properties, which are studied even by a specially created institute. Everyone knows that jewelry is made of this metal, but very few people know that in alloys with special components, it forms such compounds that can be used for the production of medical implants. Moreover, such implants are considered as safe for the human body, because silver has strong antibacterial properties.

The metal is extracted from silver ore, which deposits are scattered around the world. But today the process of extraction of this product has significantly decreased, so there is a high probability that the cost of the product in conditions of its relative deficit should increase.

World silver price

The change in the demand for silver from investors (it amounted to about a quarter of the total demand for silver in the world) has become the dominant factor that determined the movement of silver prices last 5 years. In 2013 and 2014 interest in silver from investors dropped, and growing industrial demand could not compensate for these losses. In 2013, silver fell to $ 23.79 an ounce, which was much lower than analysts' forecasts - $ 33 per ounce. In 2014, the precious metal was worth $ 19.08 per ounce, against a forecast of $ 31 per ounce.

In 2015, the decline in silver prices continued. The average annual price for metal was $ 15.68 per ounce, which is half the level of 2012. And only in mid-2016, the market price of silver returned to $ 20 per ounce. By the end of 2016, silver prices fell to $ 16-17 an ounce. On average, in 2016, the price of silver was about $ 17 per ounce, which is slightly higher than in 2015.

As for the supply of silver in the world market, in 2018 it continues to fall since for the first time its decline at the level of 1% was recorded in the last 2017. According to the Silver Institute, this year it is also necessary to expect the continuation of the decline in silver production deposits by 2% to 870 million ounces. The processing of secondary silver this year should remain at the same level in the volume of 150 million ounces. Silver price today per ounce is $ 16-17.

Silver price future

During the current year, there will be a small deficit in the silver market, which can be offset by existing reserves in banks' reserves. According to the forecast of analysts, future silver price 2018 will show a volatile development dynamics. The ratio of gold and silver is now at the level of 72: 1, but in the long run, it can approach 64: 1 (shows how many ounces of silver need to buy 1 ounce of gold). The cost of silver will receive additional support from investors who want to protect their capital against the background of high risks in financial markets.

In general, silver price future predictions are more optimistic, as, in the previous crisis conditions, silver quotes were much more stable than gold quotes. Therefore, at the moment, in spite of political instability, this metal demonstrates a fairly steady growth. On average, its cost will vary from 16 to 18 dollars per ounce. Still, the rise in prices when the quotation of silver can increase to $ 24 per ounce is not impossible.

This is also due to the fact that the use of silver is also common in various industries and the growth of the world economy will help stimulate industry, influencing the cost of metal. So, answering the question if the silver price will increase or decrease in future is possible to state that it will grow.

Investing in silver

The following factors influence the world silver price forecast 2030:

  • the behavior of investors in the market;
  • the policy of the Central Banks of economically developed countries;
  • the US Federal Reserve's policy.

market price of silverThe opinions of many experts tend to a natural silver price rise in the future decade. Because of investing in jewelry, savings cannot be depreciated, and economic problems can be avoided.

Financial institutions in Europe also share this position. They are confident in the increasing investments in silver. HSBC Bank suggested that in the near future investing in gold or silver will be changed shifting from gold to silver bullion. This will affect the demand for the precious metal.

Investing in silver mining also looks very attractive against the background of the constantly growing demand for silver with a simultaneous increase in its price. In the opinion of experts, the production of solar batteries that will be the main consumers of silver in the current 2018. By the end of this year, a new record of demand from the solar energy sector may even be established.

Exchange Rate "The National Bank of the Republic of Kazakhstan"

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* Information relevant to the 26.03.2019

Stock quotes LME

* Quotes for precious metals are per troy