Every key demand segment, except photography, is configured to record a new peak. Industrial demand is on track to grow to 539 million ounces (Moz). It could also increase silver requirements for the manufacture of photovoltaic (PV) panels, which are mainly imported from China, analysts at Heraeus Precious Metals said in their May evaluation. Historically, compared to other major investment assets, silver would continue to be relatively undervalued at this price level.
Investors can keep track of the Live Silver Price to make informed decisions. All of this justifies the forecast that silver prices will rise by 50% or more by the end of this decade. It is also in line with data from the Silver Institute, which predicts that silver will continue to have a global supply deficit in the coming years. I can understand the pain of investors who have been holding silver during that decade-long recession. In fact, the year may also mean slower growth in industrial demand (with a forecast of 6 percent), jewelry (11 percent) and silverware (23 percent).
However, the idea that silver prices generally rise when the stock market falls is essentially correct. So what is the potential for the price of silver in the future? Below, we look at some of the latest analysts' projections. In addition to investor confidence, the trend in the price of silver has been supported by its increasing use in industrial environments, which account for approximately half of the annual demand for the metal. However, this type of fall in silver is most likely to rob the Federal Reserve of a buzzword regarding the inflation transition.
While this expectation of rising rates may be doubtful, this evolution would have a more pronounced effect on gold than on silver. In the long term, greater investment in silver exploration and development will be needed to maintain mining production. Given these parameters, in my opinion, silver is about to enter another bull market phase of this current market cycle. The increase in demand for silver in the solar photovoltaic energy sector could receive a boost in the coming years that could support the value of silver in the future.
Even though I'm a silver bull, I must warn you that nothing you can own has a price that goes up in a straight line all the time. Simply put, when stock prices struggle for an extended period of time, investors turn to safer assets, such as silver and gold.