Silver might draw less attention than gold, its precious metals counterpart. Yet that doesn’t diminish its status as one of the four primary precious metals. Therefore, anyone interested in precious metals should pay attention to the movement of silver prices.
Analysts offer various predictions about where the price of silver could head in 2022. Here is a collection of those forecasts.
Market Analyst Chris Vermeulen
Silver at $33.50–$36/oz.
Chris Vermeulen has been an internationally recognized market technical analyst and trader since 1997. He focuses on educating individuals on stocks, ETFs, precious metals, and energy.
In December, Vermeulen wrote that silver “is extremely undervalued” compared with gold. He believes the price of silver could soar 60%, driven mainly by fears about U.S. and global markets. “Initially, I expect a 50 to 60% rally in silver, targeting the $33.50 to $36.00 price level,” he explained.
“Silver often reacts more aggressively at times of great fear or uncertainty in the global markets,” Vermeulen wrote, “and often rises much faster than [gold] in percentage terms when fear peaks.”
JPMorgan Chase Analysts
Silver at $20.48/oz.
Analysts at JPMorgan Chase are relatively bearish on silver prices in 2022. They predict an average price of $20.48/oz. this year, according to Kitco.
“An unwinding in ultra-accommodative central bank policy will be most outright bearish for gold and silver over the course of 2022,” says JPMorgan.
Silver at $22/oz.
The World Bank believes the price of silver could be $22/oz. in 2022, according to Knoema.
“Near-term prospects for silver largely rest on the strength of the global economic recovery, which is being tempered by a resurgence of COVID infections, particularly in Europe and the United States,” notes the World Bank.
Silver at $22.70/oz.
A panel of experts polled by FocusEconomics envisions the price of silver averaging $22.70/oz. in 2022, according to Investment News Network.
Expectations for a hike in U.S. interest rates this year have “dramatically taken the shine off silver demand and consequently sent prices lower,” says Steven Burke, an economist with FocusEconomics.
Silver at $22–$25/oz.
In a Capital.com roundup of forecasts from analysts at four firms, the price of silver in 2022 is expected to range from $22 to $25/oz.
“Silver is used in a range of industrial applications, from solar panels, electronics, and electric vehicles to medical devices, water purifiers, and wood preservatives,” Capital.com points out. “With industrial consumption accounting for around half of the world’s annual silver demand, industrial activity has an impact on silver prices.”
However, Capital.com adds, industrial activity has not expanded enough to keep pace with an oversupply in silver production.
On the contrary, The Silver Institute is projecting a supply deficit for silver in 2022, thanks to more industrial demand and global decarbonization efforts, according to Kitco.
Coin Price Forecast
Silver at $25.60/oz.
Coin Price Forecast expects the price of silver to be $25.60/oz. at the end of 2022, $30/oz. by the end of 2023, and then $40/oz. by the middle of 2025. Fast-forward to 2033, and Coin Price Forecast anticipates an astounding silver price of $90/oz.
Commerzbank Commodity Analyst Carsten Fritsch
Silver at $26/oz.
Commerzbank commodity analyst Carsten Fritsch foresees silver reaching a price of $26/oz. in 2022.
“Silver would thus also make up some ground against gold. This is not unusual, as silver normally follows gold’s price movements disproportionately,” said Fritsch, according to Kitco.
Silver to Shine Like Gold?
A survey by Kitco, which reports news about precious metals, found that asset holders are split in terms of whether silver (32.1%) or gold (32.7%) would be the top-performing metal in 2022.
Kitco notes that silver ended 2021 with an overall price decrease of 11.5%. That was the metal’s sharpest price decline since 2014. On December 31, 2021, the closing price of silver stood at $23.17/oz. That price decrease may very well be an anomaly, though.
The price of silver has increased 34% over the last five years and 381% over the previous 20 years.
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