Is a $100 per Ounce Milestone for Silver on the Horizon? (2024 Update)

As of 2024, the silver market is experiencing unprecedented fluctuations. Many factors are influencing the direction the price is taking, but could the silver price really hit US$100 per ounce? While there are elements that suggest this is a possibility, it is important to be aware of the complexity of the precious metals market and to keep a sense of realism amidst optimistic speculations. Firstly, let’s consider the supply and demand dynamics, a crucial factor in shaping the price of any commodity. Over the past years, we have witnessed an increasing demand for silver, primarily driven by its use in various sectors. Its industrial applications extend across multiple domains such as electronics, medicine, solar energy production, and more recently, electric vehicles. Moreover, the recent renewed interest in precious metals as investment assets has also contributed to the spike in demand for silver. On the other hand, the supply of silver has faced continuous challenges. Silver is frequently a secondary product derived from mining operations for other metals such as copper and zinc. With mining companies tightening their belts due to economic constraints and moving towards metals that offer more lucrative returns, this can put a strain on the supply and potentially push silver prices upwards. On the financial front, an important role is played by speculators and investors in precious metals. In turbulent economic times, silver, like gold, is often considered a ‘safe haven’ asset. This means that when economies are unpredictable or in recession, investors prefer to keep their money in assets that are expected to retain or gain value, and silver fits the bill perfectly well. This trend is amplified now due to uncertainties prevalent in global economic situations and growing inflation fears, which can also act as a catalyst for the silver prices to reach the US$100 per ounce mark. Furthermore, the role of silver ETFs (Exchange-Traded Funds) are worth mentioning. The growth of these financial instruments provides an easy means for many people to invest in silver, without the need to physically own it. This has drastically increased the pool of potential silver investors, therefore adding upward pressure to silver prices. In addition to all these, factors such as geopolitics, monetary policies, and financial markets stability all have a say in how silver prices move. Therefore, a projection of silver hitting US$100 per ounce would require certain extreme conditions dominated by high demand, and significantly disrupted supply. However, it is important to balance optimism with caution. The precious metals market is highly volatile and influenced by a range of unpredictable variables. While the