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Silver Skyrocket? The Potential of a $100 per Ounce Price Tag in 2024!

For more than a century, silver has been a critical material both as a currency and an industrial asset. Since 2011, the world’s economic and financial headwinds have led many investors to consider and revisit options for hedging their portfolios against the looming storms on the horizon. One such option that has come to be viewed with increasing interest is silver, a commodity traditionally functioning as an economic backstop in periods of uncertainty. One might then ponder, could the silver price really hit US$100 per ounce? As of 2024, while extreme, this scenario is not entirely far-fetched. Here is why.

Firstly, it is essential to remember the impact of global macroeconomic factors. Debt crises, stock market corrections, and even geopolitical tensions can catalyze an upward silver price trajectory. As an insurance asset, silver often becomes an attractive investment during times of financial turbulence when investors seek security and stability. Furthermore, silver prices have in the past shown a strong correlation with inflation rates. As we move through 2024, with signs of inflation increasing globally, silver may play a heightened role in asset protection strategies, which could in turn increase demand and drive up the price.

Secondly, we have to consider supply and demand dynamics of the physical silver market. The industries such as electronics, photovoltaics, and the medical sector, increasingly consume the silver supply. These uses are predicted to grow with technological advancements, most notably in the green energy sector. As these industries continue to expand their reliance on silver for its unique conductive properties, the demand will potentially increase, placing significant pressure on the commodity’s price.

Additionally, there is the declining rate of new silver mining. For many years, there has been a consistent drop in the discovery of new silver deposits. In the absence of substantial new silver mining projects and given the intrinsic lag time in mining operations, any dramatic increase in demand could result in a potential deficit, thereby potentially boosting silver prices.

Lastly, an often less-focused factor can elevate silver prices: investor behaviour. As speculative and momentum-driven as the market may sometimes be, the collective activity of silver buyers (especially large institutional ones) can propel it into higher ranges. A sudden influx of silver purchasing, driven by a perceived opportunity for profit, could create a bullish market for silver, pushing prices towards the $100 per ounce mark.

Nevertheless, while there are several reasons to predict silver might reach $100 per ounce, it’s also important to maintain a balanced perspective. The price of silver, like all commodities, is subject to a multitude of influences including government policies, global economic performance, and even pandemic-related disruptions. Therefore, while the path to $100 per ounce for silver is plausible under certain conditions, it is by no means guaranteed.

Ultimately, the potential for silver prices to reach $100 per ounce is more real than ever before due to a combination of external economic factors, industry trends, and investor behaviours. However, this is a threshold not to be approached casually. Investors interested in silver should incorporate it as part of a diversified portfolio and treat it as a long-term investment strategy, understanding its potential risks and benefits. Hence one should always employ prudent investment strategies and frequent market analysis when investing in commodities such as silver.

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