Did you know silver is one of the best investments during uncertain times? Because of this, some investors believe that silver is about to reach an all-time high. But, Can silver reach $100?
Silver will cost roughly $25 per ounce in 2023. Its price is nearly 50% less than the ounce’s all-time high, which was $50 in 1980. Silver has had a stable price during the last 12 months. The cost of silver has increased by 33% during the previous five years. That is not implausible, even though the price of silver would have to increase by 400% to reach $100 per ounce. These are some factors that might push the price of silver to $100 per ounce:
In reality, during the 1970s’ ten-year inflationary period, the price of silver increased from $12.4 to $50. One of the most significant increases in inflation year over year occurred in 2021. The cost of silver might soar over the $100 per ounce price barrier if there is persistent inflation in the 2020s.
- Unstable stock markets
Silver’s price typically has little relationship to the value of stocks. Thus, the cost of silver may increase if the stock market declines. The stock market indexes are currently at all-time highs. Nonetheless, many believe the stock market is overvalued and overdue for a significant reduction.
- Supply chain shock
The pandemic’s repercussions have included a supply shock that has rippled across the globe. For example, industrial plants might be forced to pay higher costs to buy whatever silver is available to keep their operations running if they cannot immediately obtain the required silver.
- The conflict between China and Taiwan
Nonetheless, the hostilities between China and Taiwan are a significant potential flashpoint. Taiwan is a sovereign nation, although China views it as a part of its territory. Conflict or escalation between the two might cause silver prices to soar exponentially.
Silver’s current pricing would need a 400% price increase for the precious metal to reach $100.