Silver Price Outlook – September 2024

“Silver Price Outlook
While silver prices rose over the course of August, their price performance continued to lag that of gold. Not only are silver prices nowhere near their record high levels, while gold prices have been making fresh record highs, but silver prices also have been struggling to break above or sustain any break above the $30 level. One of the primary reasons for silver’s lackluster price performance has been ongoing stale bull liquidation, which is the selling of silver bought by investors in past years in anticipation of silver prices reaching fresh record high levels. There are several fundamental reasons for investors to be adding silver to their portfolio ranging from the political and economic reasons that are driving gold investment demand but also the expected increase in demand for silver from the solar panel industry in the next several years.

While there are investors adding silver to their holdings due to these reasons there are other investors that have been disappointed with silver’s performance over the past several years that are exiting their positions. While this process plays out silver prices are likely to struggle to rise in a sustained fashion. That said, there is a strong chance of silver prices rising strongly due to the aforementioned fundamentals continuing to support silver investment demand and the stale bull liquidation eventually coming to an end or at least reducing in intensity as more and more of these investors exit their positions. This expectation suggests that now is the time to enter the silver market, ahead of the projected strong increase in silver prices over the next few years.

Silver prices are expected to experience a fair bit of volatility over the next few months. Broad market nervousness about economic conditions could drive prices lower, possibly toward $26.70 or $26.50. But given the excessively volatile nature of silver, a sharper decline should not be ruled out.

That said, silver is purchased by investors primarily as a safe haven asset, and concerns of economic weakness or a recession should help to bolster both investment demand as well as prices. Silver prices are expected to strengthen on average over the next few quarters, potentially outperforming gold. On the upside, silver prices could retest the highs that they experienced earlier this year, over the next few months.”