So how much will silver be worth in 10 years time? It's hard to say for sure. In at least two of the three scenarios mentioned above, buying silver could be a great idea. Bullish silver markets could see rapid increases in the price of silver and, in hyperinflationary environments, silver could become an important medium of exchange. How much will silver be worth in 10 years? Overall, the outlook is good, but the biggest threat would be a general disaffection with ingots as an investment, leading gold to lose its “little sister”.
In both cases, bullish silver markets occurred when major market players bought silver futures contracts. 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. One of the main reasons to invest in a physical product such as silver is to protect against inflation. The more ounces of silver you can buy for an ounce of gold, the higher the price of gold relative to the price of silver.
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. Although Neumeyer believes that we must break the ties between silver and gold, the reality is that most of the same factors that shape the price of gold also move silver. Gold is traditionally the best option for investing in commodities, but it is usually much more expensive than silver. Rate cuts are usually good for the physical prices of silver and gold bars, because when rates are lower, it is more profitable to invest in precious metals than in products that can generate interest.
A second consideration is that half of all the silver extracted is used for industrial purposes, rather than for jewelry or investments. However, we can look at historical trends in silver prices and, taking into account some assumptions about the market, provide an informed estimate of demand for silver ten years from now. Most manufacturers use solar cell architectures that require the use of conductive silver paste, making commodity silver prices a pressing problem in photovoltaic energy manufacturing. Finally, there is the legacy of speculation, a hangover from the period between 1933 and 1974, when American citizens were banned from holding investment gold and, therefore, played in the silver market.
This increase was mainly due to the Hunt brothers, three brothers who managed to buy almost a third (100 million ounces) of all the world's silver reserves, an event called Silver Thursday. 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.