Commonly traded precious metals like gold and silver have a tendency to become more appreciated and valued during times of economic uncertainty. With inflation on the rise, silver has experienced noticeable price increases so far in 2022. This has led to speculation that this particular precious metal could soon hit $100 an ounce. We dig deeper into this topic below to give you a better idea of what to expect with silver prices.
We’ve Been Here Before
A steady climb in silver prices isn’t a new trend. It actually happened once before under similar conditions in the 1970s. This is when rapidly increasing inflation and other global factors contributed to a big spike in silver prices throughout the decade. According to the Silver Institute, 1979 was a peak year for silver prices during the disco decade due to a severe shortage of the metal and other factors common during that time.
Flash Forward to 2022
According to Goldalliance.com, inflation is one of the factors that could cause silver prices to climb to $100 an ounce or more in 2022. Other experts in the precious metals world also generally agree sustained higher levels of inflation throughout 2022 and into 2023 could create ideal conditions for silver to hit the $100-per-ounce mark.
An Increase in Demand = Higher Silver Prices
The price increases with silver began in 2021 after calming down slightly from the increases that occurred in part due to the pandemic in 2020. However, as inflation rose to a 13-year high in 2021, investors began paying more attention to both gold and silver again. In 2022, inflation has risen to its highest point since 1982, which has further created more demand for silver in various forms, including silver bars. Carlsbad silver investors should be aware that this translates into higher prices for silver, especially in any solid form.
Silver’s Supply Is Limited
Another reason silver could hit $100 an ounce in the near future is because of its limited supply. According to the United States Geological Survey, there are approximately 530,000 million tons of silver yet to be mined, with most of it being in Peru, Poland, and Australia. This may seem like a lot, but it takes time to mine silver and get it actively on the market and available for consumption. What’s more, there are other uses for silver that are also driving increased demand. According to Usmoneyreserve.com, when not used for investment purposes, silver is used for:
• Solar technology
• Automobile manufacturing
• Engine bearings
• Water purification
Invest Wisely in Silver
Regardless of economic factors, financial experts have long advised investors to consider adding precious metals to their portfolios. If this is something you’re looking to do for some added peace of mind, consider working with an investment professional. Doing so allows you to get personalized advice so you can make smart investments. Also, keep an eye on silver prices so you’ll have a better feel for when to buy and when to consider selling.
Whether they’re looking for expert advice on silver prices or they want to buy gold, Carlsbad collectors should work with trustworthy precious metal dealers who offer high-quality service and have years of experience. Call on the industry-leading professionals at First National Bullion when you’re ready to invest in precious metals, including gold, silver, platinum, and palladium. Give us a call today at 760-253-8072.
The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.