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Keeping up with the latest news and price fluctuations of silver can be overwhelming. Silver enthusiasts need a clear, up-to-date, and trustworthy source to keep them updated with the silver market.
We’re here to help keep you up to date on:
- Silver news in industry
- Silver market news
- Silver price news and movement
- Silver investing tips
- Predictions on both how high silver will reach and how low silver will go
Silver investment news changes on a daily basis, so check back often to get the latest updates.
Silver Price History
Over the last 100 years, the price of silver has fluctuated between a low of $0.28 and a high of $50.50 per ounce.
The low came in 1932 during the Great Depression, after a major crash of the stock market ruined the finances of millions of Americans.
The highest price of $50.50 was reached in 1980, when, in an effort to hedge against over 14% inflation, the Hunt Brothers attempted to corner the silver market. During their attempt, silver prices, from 1979–1980, increased a whopping 724%. The COMEX exchange eventually changed margin requirements on silver investors, and the price of silver plummeted back down.
Between 2017 and 2018, silver declined 9.4%. Since then, this is how silver has closed the past five years:
- 2019, up 15.36%
- 2020, up 47.44%
- 2021, down 11.55%
- 2022, up 2.64%
- 2023, down 1.93% (as of May 2023)
The average price of silver over the last five years has been:
- $16.22 (2019)
- $20.69 (2020)
- $25.14 (2021)
- $21.76 (2022)
- $23.39 (2023)
Silver Outlook 2023
To those who’ve already invested and for those interested in silver investing in the future, there may be welcome news. Some analysts feel that silver could reach a nine-year high of $30 per ounce in 2023. Many investors who rely on the gold-silver ratio as an indicator feel that silver should move much higher.
The basis of that analysis of the silver market hinges on three factors:
- High inflation
- Insufficient supply
- Robust industrial demand
High Inflation
Inflation is often caused by rapid economic growth. Consumer spending increases at a pace where product supply cannot keep up with the demand of products.
In inflationary times, silver tends to perform very well. In years that inflation is high, silver has averaged close to 20% gains. During these periods, silver also tends to outperform gold.
Inflation eats away at the value and spending power of dollars. Price increases tend to outpace increases in wages, which essentially means that every dollar that you earn and spend will get you less in goods and services.
Investors looking for a store of value to offset inflation often turn to the safe haven asset of silver. Silver is a tangible asset, priced in dollars. When inflation causes the price of silver to increase, it takes more dollars to purchase it, effectively retaining the value of the dollars spent on the purchase.
Exuberant spending in our modern world also tends to be favorable for silver. Many of the most popular consumer products have silver in them. Televisions, cell phones, computers, and automobiles all rely on silver.
Insufficient Supply
Most analysts feel that there is a shortage of silver.
Silver production has fallen since its peak supplies of several years ago.
There were 900 million ounces mined in 2016, compared to only 843 million ounces mined in 2022.
Only 25% of the silver supply is mined from dedicated silver mines. The rest is harvested as a byproduct of gold, copper, and lead-zinc mining. As a result, it is not easy to respond to increased silver demand.
Robust Industrial Demand
Understanding industrial demand may be one of the most important keys to silver investing. Almost 50% of silver’s demand comes from industry.
Industrial fabrication accounts for silver’s biggest demand. Solar panels, electronics, automobiles, and soldering supplies all use silver in abundance.
Silver bullion bars and coins have also been in high demand. In 2022, consumption reached 325 million ounces, a record high. There are many great options for investment grade silver coins. The Royal Canadian Mint and the US Mint manufacture some of the finest and purest coins in the world, many of which may fulfill your investment needs.
Jewelry and silverware demand also used nearly 300 million ounces of silver in 2022.
If you’re wondering how low silver will go, remember supply and demand are pointing to increased silver prices.
How to Invest in Silver
If silver investing is for you, there are many ways to go about it. Two of the most common avenues to ownership are by using cash or opening a Silver IRA.
Using cash to purchase your metals is easy. With the direct delivery method, you simply choose the silver bars and coins you would like to own. Then remit payment via check or wire transfer, and the metals are shipped directly to your door. It’s just that simple.
The majority of our clients at Advantage Gold use a Silver IRA. If you are unfamiliar, our educational guide on the Silver IRA can help you understand how and the why, as well as the do’s and the don’ts, of Silver IRA investing.
The Silver IRA allows you to own physical silver coins and bars inside of your individual retirement account.
If you already have a traditional, a Roth, or a SEP IRA, you can transfer it into a Silver IRA. There are usually no penalties or tax consequences for this transfer, as your funds typically move directly from one account to another, and no withdrawals take place.
If you are age 59 ½ and have a 401(k) or similar account, or if you still own an old 401(k) from a previous job, it should be eligible for an IRA rollover into a Silver IRA.
A rollover allows you to tax-free, penalty-free, convert your 401(k)—or similar account—into the type of IRA that allows you to own physical silver.
If you’d like to learn more, or are ready to get started, call us at Advantage Gold. The process is simple, and we will walk you through every step. We are the highest-rated precious metals firm in the industry, and our trained professionals will show you why.
Click here and we will contact you, or call us directly for immediate attention.
We’re happy to help.
Additional Sources:
- https://www.cnbc.com/2023/01/20/metals-silver-prices-could-hit-a-9-year-high-in-2023-outpacing-gold.html
- https://investingnews.com/daily/resource-investing/precious-metals-investing/silver-investing/5-factors-drive-silver-demand/
- https://www.britannica.com/technology/silver-processing
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