Could Silver Hit $35 in 2024? Expert Analysis & Predictions

Sean Brazney: Hello, my name is Sean Brazney, Sales Director for Monex Deposit Company. The great pleasure of being here again with Jeffrey Christian, Founder, Managing Partner of CPM Group, one of the many analysts out there, commodities analyst, over there at CPM Group. Thank you for being with us today, Jeffrey.

Jeffrey Christian: Good to be here with you Sean. I hope everything’s fine with Monex.

Sean Brazney: You know, there’s people that have been investing in silver all the way down at $1- $2 an ounce and all the way up to $50 an ounce and we just came out of about a four-year channel between $22 and $26, and it’s like the average investor gets hypnotized. We break out of that $26 level. We come all the way up into the $31, $32 level in silver, $31.40 today, and I keep hearing, you know, you’ll let me know when it gets back to $26. What a great time to have you here to talk to the silver investor. What would be your best advice for that individual to be? They’re either in it, they were in it, they’re thinking about getting back into it. What’s the best advice you’ve got for that silver investor today?

Jeffrey Christian: Silver is very interesting and this is the right time to do it. As you said, silver has been sort of trading sideways. It had been trading sideways at a much lower level, like $15, $17. In 2000, 2001, it popped up and it’s been in this $20 to $26 range, as you said, for most of the last four years. We’ve seen the price break out earlier this year. It really in March had started moving, and if you look at January, February, silver was trading between $22 and $24. In March, it popped up along with gold. There were a variety of economic and political factors there. There was also strong fabrication demand, a little bit of an uptick in investment demand in the second half of March. That was followed with another wave of investment demand that took the price up to $30 in April, and then in May, the price shot up. I think it almost got to $33. It was like $32.50, $32.75, whatever, and it’s come back off. It’s trading around $30, $31 right now today.

Our view is that investors should expect the silver price to rise. We have been thinking that the price would rise. We have an annual average price that we’ve been projecting for this year or next year, around $35, and that actually is the record annual average high back in 2011. Everybody knows the price spiked up to $50, but they don’t know that the average price for the year was about $35, and I think from an investor, and from a fabricator, and from a miner perspective, that annual average is a lot more important. Trying to pick the peak is like catching falling knives. It takes an expert, but I think that our expectation is that the price of silver may consolidate a little bit now. We’re seeing a very interesting dynamic. You have investors who were disenchanted, because they had bought silver back at $28.30, $32 in 2021 during all of the Wall Street silver hoopla, and then the price came back down. I think it got down to about $16 or $17 at one point over the last couple of years, 2022, and there’s been a lot of disenchantment and disappointment. We saw selling in 2023 and when the price spiked up in April and May, we saw some more selling, but that was more than offset from what we can tell by fresh buying and the fresh buying makes sense to us, because our expectation is that the price consolidates now for a couple of months during the summer, but that looking at— I came up with a great word this morning— the panoply of political and economic and financial issues that the United States and the world are facing. We think that the last four months of this year is going to see another wave of investment demand that takes the silver price back up over $32, over $33, and starts moving us into that higher annual average price. We may not see $35 or $30 or higher prices on an intraday basis yet in 2024. I wouldn’t be surprised if we do. I do think that there is at $40 and $50, there’s a lot of silver that starts coming back into the market. We saw that in 1980. We saw that in 2011, and I think we’ll see it again, but I do think there’s this tremendous potential for a major upward move in silver prices the final four months of this year into next year, given all of the political and economic issues that we’re facing.

So, I think you’re seeing some investors say, “OK, I’ve recouped my losses from 2021,” but I think you’re seeing even more investors saying, “OK, this is probably the upward move,” and when I watch the news or read the paper, I realize that there are all sorts of reasons that politicians around the world are giving me to want to own silver and gold, and I think that that’s going to be reflected in higher demand and higher prices in the second half of this year.

Sean Brazney: Well, I’ve got to remind our viewers that we have a lot of resources from CPM Group. We have a new one coming out. I’m not going to give away too much now, but another one that you’re doing for us that will be out here by the summer, and remind our viewers to call Monex, talk to an account representative, get your free 2024, Precious Metals in A Rising Storm 2024, free report today. Thanks for being with us today, Jeffrey.