How High Will Silver Go?

25 Oct

How High Will Silver Go?

$40? $50? $100?

How much higher do you think silver will go?  

One of the world’s largest investment banks agrees with us that it will go higher.  

Much higher.

Twice in less than 50 years, silver has raced to the $50 an ounce neighborhood.  The last time was in 2011.  Before that, it was in 1980.

Maybe wise king Solomon was right, that “what has happened before will happen again. What has been done before will be done again.”

But you don’t need to be a philosopher to foresee much higher silver prices.  You just need to look at the dismal debt picture and the currency devaluation that unpayable debt will demand.

circulated morgan dollar
Silver Morgan Dollar

The resource team at Citigroup has looked at those factors, as well as expected natural resource demand, and the technical picture as well, to make a case for $100 silver.

Forbes contributor Tim Treadgold described Citi’s case for a 60 percent price rise “for starters.”  Citi analysts have tipped their clients that silver will rise to $40 an ounce over the next 12 months.  

Says Treadgold, “Citi’s case for silver is based on growing demand from investors who see silver as a cheap entry point into the world of precious metals dominated by gold, with a bonus of strong industrial demand.”

But the Citi outlook doesn’t stop at $40 an ounce.  “It also argues that there is a technical case for silver doubling to $50 an ounce, and potentially rising four-fold to $100 per ounce.”   

According to Citi’s analysts, “We expect that investor demand for precious metals exposure will remain high during 2021 as pressure on governments to devalue currencies, concerns about vaccine efficacy and take-up rates and questions over equity and bond valuations and rising global debt remain in most scenarios,” Citi said.

The bank calls its forecast of $50 a “very realistic target,” and $100 an ounce “possible.”

In August we reported that Bank of America has a $50 silver target:  “The bank’s call for higher silver prices rests not just fiscal and monetary grounds.  Its analysis takes note of so-called ‘green’ initiatives in Washington which could drive new industrial silver demand, especially for solar power applications.” 

The nation’s second largest bank, writes that silver could rise to $35 next year, and rally to $50 in the medium turn.

jim-sign