The silver price saw some ups and downs in 2017, but overall it looks set to end the year fairly flat — as of Monday (December 4), it was up only about 2.3 percent year-to-date, sitting at around $16.30 per ounce.
Many analysts believe 2018 will bring a slightly improved price. According to Metals Focus, the white metal should average $20.60 next year, up over $3 from its $17.13, its average 2017 price as of November 10.
Experts polled by FocusEconomics agree — in a report published recently, the firm lists forecasts from over a dozen different outlets, with the lowest 2018 average forecast being $16 and the highest being $21.30. Overall, the consensus silver price forecast for next year came in at $17.80.
Analysts who are bullish on silver in 2018 have a variety of reasons for their thinking, but many have mentioned that they see the white metal following gold on an upward trajectory.
For instance, TD Securities analysts said in their 2018 Global Outlook that “underperforming silver is set to shine as gold improves amid still low real rates, firm demand, weak supply and higher [volatility].” They expect silver to average $18.50 over the first half of 2018, and $19.25 in the second half of the year.
Bart Melek, the firm’s head of commodity strategy, noted that prices for both gold and silver are expected to increase over the next 12 months because “we don’t think the Fed is going to be anywhere near as hawkish as its statements are indicating.” TD Securities also sees investors using precious metals as a hedge if equities continue to stay in record territory.
In a November interview, Frank Holmes of US Global Investors (NASDAQ:GROW) also suggested that silver could follow gold upward. He said, “when gold goes to $1,350 per ounce you’ll get a quantum leap in silver. Silver always has sort of a catch up, and all of a sudden it’s the best-performing [metal].”
Similarly, Frank Basa, president and CEO of Castle Silver Resources (TSXV:CSR), said “silver’s price is likely to move higher along with gold as the US currency loses its position in the world market.”
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