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. These data suggest that silver is more likely to rise this year than to fall. Market participants interested in investing in silver would do well to consider these ideas when trying to determine where the spot price might move in the future.
Let's take a look and see how silver works, what its price history has done for the past year or so, and let's take a look at the silver price forecast. In addition, prices in the third phase of a bull market tend to reach levels that surprise even the most staunch bulls. One important thing to note about silver is that, unlike gold, which is primarily used as an investment asset, practical uses represent more than half of the metal market. Whether silver is the right investment for you depends on your risk tolerance, market outlook, and whether you expect it to rise or fall further, among other factors.
We recommend that you always do your own research and consider the latest news on the price of silver, market trends, technical and fundamental analysis, and expert opinion before making any investment decision. However, keep in mind that while forecasts can often be wrong, short- and medium-term predictions agree that the price of silver will fall slightly. Due to the logistics and economics of precious metal mining, only 8 or 9 ounces of silver are extracted for every ounce of gold extracted. Mexico, China and Peru are the three main producers of silver, and any disruption in their national economies can wreak havoc on supply.
No one seems to think that investing in silver will be a safe path to wealth, but on the other hand, the predictions do not suggest that it will lead to impoverishment, even if they tend to be bearish rather than bullish. The pink curve on this monthly silver chart is not based on any calculation or analysis. I just added the curve drawing tool to the graph and started moving it. This represents a gradual step forward by the government towards economic reopening, which benefits the price of growth-sensitive and industry-linked commodities, such as silver.
In the long term, greater investment in silver exploration and development will be needed to maintain mining production. The value of stocks and ETFs purchased through a stock trading account can fall or rise, which could mean getting back less than you originally deposited. The Fibonacci extension is another method of predicting the price of silver that gives us price targets, but not a specific time to reach those levels.