Silver Price Forecast 2021

Bank of Montreal

~ $27.50/oz Silver

How did the Bank of Montreal interpret the Federal Reserve’s new 2%-average inflation target? Higher gold and silver prices. So bullish is the BMO, it revised its long-term price forecast for gold and silver.

The bank predicts the price of silver to average approximately $27.50 an ounce during the fourth quarter of 2020. And you know what that means? Silver prices would likely open 2021 somewhere close to that price point, an inference supported by the BMO’s 3-year, average silver price forecast of $27.60.^[4]

Mitsubishi

$50/oz Silver

Echoing the BMO’s analysis of the Fed’s 2%-average inflation target, Jonathan Butler, the head of business development and a precious metals analyst for Mitsubishi, predicted the price of silver to reach its all-time high of $50 an ounce.

Pointing out that silver prices have already outperformed gold prices this year, increasing 113% compared to gold’s 30% jump, Butler said silver is “still relatively cheap by historical standards.” As inflation rises, which the Fed is now allowing it to do, it will push real interest rates further into the negative, lowering the opportunity cost of holding the historic inflation hedge.^[5]

Nicoya Research

$55/oz Silver

Economic recovery or not, financial analysts at Nicoya Research are bullish on silver, forecasting the white metal to fetch $55 an ounce. Why? The precious metal is undervalued, as evidenced by the 100-plus gold-to-silver ratio reached last March. Should industrial demand, which accounts for about 50% of silver demand, rebound, so too would the price of silver. And what if we have a prolonged recession instead? Bargain silver prices could be here to stay for longer.^[6]

Technical Traders

$60/oz Silver

Fear and uncertainty could catapult precious metals prices past the record highs set in 2011, argues the Chief Market Strategist and Founder of Technical Traders Chris Vermeulen. Gold already surpassed its 2011 high of $1,917.90 an ounce. The upcoming U.S. presidential election will likely jolt the markets further, propelling the price of silver to $60 an ounce by the end of January 2021.^[7]

Gov Capitol

$37.81/oz Silver

Now you’ve read several human predictions for the price of silver next year. But what about the hardwired experts? Gov Capitol’s Deep Learning algorithm forecast $37.81-an-ounce silver by Q1 2020. Making silver well “suited as a new edition to your portfolio as trading bullish markets is always a lot easier.”^[8]

Raymond James

$25/oz Silver

So bullish is Raymond James on silver, the financial services firm raised its average price forecast for 2021 to $25 an ounce. That’s a 37.9% increase from its previous prediction. The firm based its forecast on the gold-to-silver ratio, which shot to the 100:1-mark last March, “[revealing] a ‘wider-than-ever margin between the precious metals and [signaling] a potential reset in the months to come.’”^[9]

CPM Group

$20/oz – $35/oz Silver

‘This is an enormous range and reflects the expectation of volatile economic, political, societal, and public health trends over this time,’ explained Jeffrey Christian, managing director of commodities research and consulting firm CPM Group, of his silver price forecast of between $20 per ounce and $35 per ounce over the fourth quarter of 2020 and the first quarter of 2021.^[10]

CIBC

$32/oz Silver

U.S. bank CIBC foresees the price of silver running up to $32 an ounce in 2021 because the white metal ‘has the potential to provide investors with even more torque given the relatively smaller market for silver vs. gold.’^[11]

InvestingHaven

$28/oz Silver

“Wildly bullish.” That’s how the financial analysts at InvestingHaven foresee silver performing next year, joining the chorus of industry insiders predicting rising inflation to fuel a prolonged rally in precious metals and making now the ideal time to invest in silver.

Morgan Report

$65/oz Silver

David Morgan, of the Morgan Report, foresees massive buying and selling triggering “volcanic tremors” in the silver market over the next few years. Until the price of silver hits $50 an ounce. Then it will leap to $65. Within 3 years we’ll see triple-digital silver prices.

What’s his reasoning? Silver supply and demand. Specifically, grades have been plummeting. Miners have to dig up twice as much ore to get the same amount of silver as 10 years.^[12]