Silver Forecast for 2022: When considering the potential silver value in the future, analysts continue to balance expectations that inflation could support the price against monetary policy that could continue to exert downward pressure.
Analysts at TD Securities are cautious on the short-term silver forecast. “Silver has continued to underperform on a volatility-adjusted basis as industrial headwinds sap appetite for the metal. In this lens, we have opted to take profits on our inverse-vol weighted long-short gold/silver position,” they wrote in their most recent market update.
According to technical analysis by brokerage firm Zaner on 9 December, “Daily stochastics are trending lower but have declined into oversold territory. A negative signal for trend short-term was given on a close under the 9-bar moving average.”
“The market’s close below the picot swing number is a mildly negative setup. The next downside objective is 22.169. The next area of resistance is around 22.582 and 22.718, while first support hits today at 22.308 and below there at 22.169.”
Analysts at Australian bank ANZ are more bullish on the outlook for silver than gold. Their silver price prediction has the metal rising to $24 per ounce by the end of December and in the first half of 2022.
“Silver is likely to largely follow gold, but the market balance looks supportive through 2022. The electronics sector, along with strong solar and electronic vehicles, has helped industrial demand to recover to pre-pandemic level of 556moz this year,” they wrote on the silver outlook in a recent note to clients.
“We expect fabrication demand to increase by 3% y/y to 572moz, supported by the electronic and solar sectors. Automotive industry demand for silver is rising and is estimated to increase from 61moz to 88moz by 2025, according to Metal Focus. We expect silver to outperform gold in 2022, with prices finding a floor near USD20.8/oz.”
Analysts at Canada’s Scotiabank predict the silver price in 2022 could average $25 per ounce, before slipping back to $23 in 2023. Analysts at ABN Amro are more bearish on the outlook for silver in the future, predicting that price could decline from an average of $23.50 per ounce in 2021 to $22 in 2022 and $20 in 2023.
Analysts’s Silver price forecasts for years ahead $/ounce
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It’s important to keep in mind that financial markets remain extremely volatile, making it difficult to accurately predict what an asset’s price will be in a few hours, and even harder to give long-term estimates. And please note that analysts can and do get their predictions wrong.
We recommend that you always do your own research, and consider the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decision. And never invest more than you can afford to lose.
Whether the silver price will go up depends on the US Federal Reserve’s policy on interest rates, inflation as well as the strength of the US dollar. Supply and demand will also be key drivers, with both mining and industrial production rebounding after disruptions during the Covid-19 pandemic.
Some analysts predict that the silver price will remain under pressure in the short term. Looking further ahead, Coin Price Forecast suggests that the metal’s price could exceed $60 per ounce by 2026. At the same time, it’s crucial to keep in mind that analysts and algorithm-based forecast services can get their predictions wrong. You should always do your own research.
The silver price tends to move in tandem with the gold price, in response to macroeconomic factors. Higher interest rates and a stronger US dollar typically weigh on the gold price, while higher inflation, lower interest rates and a weaker dollar provide support. There are more industrial uses for silver than there are for gold, so global industrial production can also influence the silver price.
Whether the silver price will go up or down will depend on several factors, among which are the US Federal Reserve’s policy on interest rates, inflation, and the strength of the US dollar. Supply and demand will also be key drivers, with both mining and industrial production rebounding after disruptions during the Covid-19 pandemic.