Recent events have appeared to put silver prices on a rising trajectory. In the wake of the pandemic, and with thei US dollar weakening, there are a number of market analysts predicting that silver prices could hit US$100 per ounce in the next few years.
The silver market is not something that most people keep an eye on, but the metal is becoming increasingly important as both an investment asset and a commodity. With silver prices continuing to rise, the debate is raging as to whether or not this can continue and if the US$100 per ounce mark can be broken.
The current price of silver is US$26.76 per ounce, so reaching such a high price is no small feat. However, it is considered entirely feasible if certain conditions are met.
The first condition is inflation: as the US dollar weakens, silver and gold become more attractive safe-haven assets and increase in value. Economic instability and currency devaluation can often lead directly to higher prices for silver.
Another factor is the state of the mining industry. With COVID-19 causing a shortage of labour, resources, and transportation, production is being affected, which could lead to an increase in the price of silver.
Finally, the global economy also plays a role in silver prices. A strong and healthy global economy is likely to boost demand for the metal, while a weak market will have the opposite effect.
These conditions create opportunity and risk at the same time. On the one hand, the US dollar could continue to weaken, creating ideal conditions for silver. On the other hand, there is a possibility of the global economy suffering losses due to COVID-19, leading to a dip in silver prices.
Given the current state of affairs, it is impossible to predict whether or not the US$100 per ounce mark will be broken in the next few years. However, the idea is not completely out of the realm of possibility. In fact, there are some market analysts that suggest that silver prices could continue to rise in the future, reaching levels that no one had expected or predicted.