In other words, the ratio is likely to fall and, therefore, the price of silver will rise. The ratio is also 28% above its 50-year average. When considering silver price predictions, it's important to remember that high market volatility makes it difficult to obtain long-term estimates. The three key factors discussed below will have the greatest impact on the price of silver over the next 7 to 10 years.
Jeffrey Christian, managing partner of the CPM Group, believes that while the prices of gold and silver may be suffering a short-term hit, investors with a longer-term market view may view this fall in prices as an opportunity. Like gold, silver backwards and just like gold, I don't believe the supposed bullish narrative in this case. As a result, it seems that silver will have to fall deeply before rising again (to new all-time highs). This dynamic is, without a doubt, the result of the long history of monetary characteristics of silver (i).
In fact, during periods of rapid economic expansion, there is usually a negative correlation between the price of silver and the USD. 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. This is likely to cause the price of silver to decline profoundly, as industrial demand for silver could be adversely affected by lower economic growth (or a decline in economic activity). Any forward-looking statement regarding the silver price forecast should not be used or interpreted as investment advice.
Silver is also widely used in specialized electronics, where cost allows it, since it is an excellent conductor of electricity, even better than copper. Therefore, one of the driving forces behind the increase in silver prices over the next five years is the numerous applications of white metal in green technologies and the green economy. I still have good reason to believe that silver is an undervalued asset compared to other investments. Mexico, China and Peru are the three main producers of silver, and any disruption in their national economies can wreak havoc on supply.