2024 Silver Price Forecast
NASDAQ believes that the price of silver could go as high as $26.20, and if it does get to that level, it believes it could rise further to $28.
Silver is currently priced at $23.31. At $26.20, that’s a 12% increase. At $28, that’s a 20% increase.
Factors that Could Push the Price of Silver Higher
Lower Interest Rates
There’s anticipation that the Fed will lower interest rates in 2024. Silver often has a negative correlation with interest rates.
Investment in silver increased because of rising interest rates and the failures of 5 banks in 2023. When the Fed increased interest rates to combat inflation, the bond market was decimated. Banks were caught off guard and found the billions of dollars in bonds that they held plummet in value. Many banks were upside down in bonds and could not adjust their bond holdings quickly enough. They found themselves with insufficient funds to carry on everyday business. Knowing that many other bank failures were coming, the Fed implemented a bank bailout program called the Bank Term Funding Program. With banks getting a one-year reprieve under BTFP and talk of a looming recession, money could begin to flow to precious metals.
Global mined silver production is expected to decrease by 2%, thus reducing the silver supply. Production decreased most notably due to production losses at major mines such as Peñasquito in Mexico which suspended operations in 2Q23 and 3Q23 in response to its labor strike.
Increased Silver Demand
Industrial silver demand is expected to increase, driven by green technology investment in photovoltaics (solar panels), electric vehicles, power grids, and 5G networks. In electronics, silver is used mainly in multi-layer ceramic capacitors, membrane switches, silvered film, electrically heated automobile windshields, conductive adhesives and the preparation of thick-film pastes. In solar panels, silver is used as conductive ink which helps photovoltaic cells transform sunlight into electricity. In the automotive industry, electrical car functions today are triggered with silver-coated contacts. And last, when adding silver to the soldering or brazing process, metal parts and joints are smoother, leak-tight and corrosion-resistant.
The conflicts in the Middle East and Ukraine could intensify and affect supply chains, notably oil. New ones could also emerge. If oil supplies were to be constrained, the cost of every day goods (and inflation) would skyrocket. All told, geopolitical conflict can drive safe haven asset prices, such as silver, higher. Just keep this in mind: when investors get nervous, the money goes to precious metals.
Add up all the 2024 predictions: silver supply to drop + silver demand to increase + lower interest rates + the possibility of more bank failures and war = higher silver prices in 2024.
The time to buy silver is now.
What Investors Are Doing to Protect Their Savings and Retirement
The best way to protect your savings and retirement is with an asset that can weather any market and economic storm.
History has proven that in times of inflation, talk of a recession, geopolitical conflict, and the threat of bank failures, the money flows to silver.
Silver is insurance.
Silver is a natural, physical store of value that does not depend on anyone or anything to create its value; it appreciates in value and protects you against bank failures, loss of purchasing power, and stock market crashes.
Silver is known to have an inverse relationship with stocks and bonds and, therefore, is a smart diversification asset that should be included in a Precious Metals IRA and 401(k).