Silver has long been valued as both an industrial metal and a safe-haven investment, making it a popular choice for investors seeking to diversify their portfolios. Its price is influenced by a combination of factors, including supply and demand dynamics, economic trends, geopolitical events, and shifts in monetary policy.
In recent years, silver has gained renewed attention for its role in green technologies, such as solar panels and electric vehicles, as well as its historical function as a hedge against inflation. Whether you’re a seasoned investor or just starting to explore precious metals, understanding silver’s market trajectory is crucial for making informed decisions.
This guide offers insights into silver price forecasts and key market drivers.
Historical Price Performance of Silver
In the last 50 years, the price of silver has fluctuated, rising and falling with changes in economic factors. On Jan. 17, 1980, the spot price of silver hit a high of $49.45, with an average peak of $20.98 for the year after a decade of languishing below $10 an ounce.
It again fell below $10 an ounce before rising to an average price of $14.99 in 2008 as investors sought shelter and bought up precious metals during the global banking collapse.
The massive quantitative easing policy of the U.S. Federal Reserve to prop up the economy brought on additional silver investments. The price of silver climbed to $48.70 by 2011, with an average price of $35.12. However, silver prices fell back, hovering between $16 and $20 an ounce until 2020. It then broke through with average prices of $20.69 in 2020, $25.14 in 2021, $21.76 in 2022 and $23.34 in 2023.
The 2020 COVID-19 pandemic spread economic uncertainty, again sending investors looking for safety in precious metals. The inflation and interest rates that followed also impacted the price of silver over time.
Factors Influencing the Price of Silver
Silver is often considered the poor cousin of gold, and it typically tracks the movement of gold. While investors use both precious metals as a store of value, silver tends to be more volatile because of its high industrial use. Those dual purposes of silver make it more easily influenced by supply and demand, geopolitical uncertainty, and the strength or weakness of the U.S. dollar.
Silver has been used in medicine for centuries, and it is also highly sought after for other industrial uses, such as jewelry, mirrors, and electronics. The push for clean energy has a growing influence on silver, pushing up demand for silver used in windmills, electric vehicles, and solar panels.
Considered by many as being undervalued, silver is drawing interest from investors who are betting on interest rate cuts among central banks. When interest rates drop, investors tend to move away from interest-bearing assets toward gold and silver.
Silver Price Forecast for 2025
Through 2025, analysts forecast the price of silver to rise as buying increases because of geopolitical tensions. Continued fighting between Ukraine and Russia and a wider conflict in the Middle East can drive investors to seek a haven in silver.
According to ANZ Research, silver prices are expected to reach $35.40 per troy ounce in 2025. This forecast is based on strong fundamentals and a combination of macroeconomic and industrial factors. Projections by other financial institutions and analysts are here:
- UBS: Anticipates silver prices reaching between $36 and $38 per ounce in 2025.
- TD Securities: Forecasts spot silver prices at $33.25/oz in Q1, $33/oz in Q2, $34/oz in Q3, and peaking at $36/oz in Q4.
- FX Empire: Suggests that surpassing $34 in 2025 could lead to a bullish trend towards $43 to $50, with a support range between $25 and $28.
Silver Price Forecast for 2026-2030
As silver demand continues to outstrip supply, some investors expect the price of silver to rise precipitously, with average silver prices bounding up the stairs from $70.33 in 2026 to $102.19 in 2027 to $148.49 in 2028 to $213.69 in 2029 to $307.45 in 2030.
The Minerals Council of Australia (MCA) says the same monetary policies and investments expected to drive up the price of gold by 2030 will push its poor cousin along, too. The MCA predicts silver prices will surge 27% because of increased demand for silver for consumer electronics and solar photovoltaic cell production.
Silver Price Forecast for 2031-2035
Most analysts are hesitant to predict any price trends beyond five years. However, most agree the silver outlook appears bright. They expect increased silver demand from emerging markets, solar PV cell production and other industrial applications to continue influencing silver’s price growth.
PricePrediction.net’s silver price prediction for 2031 has an average trading price for silver at $429.64, rising to an average price of $915.83 in 2033. PricePrediction.net warns of any long-term silver price forecast after that.
How to Invest in Silver
If you want to invest in silver, you can do so in two ways: buy bullion or buy securities. Buying bullion means you can own tangible bars or coins. Consider the costs of shipping and storing your physical bullion to understand your return on your investment.
For securities, you have several choices. You can invest in the stocks of mining companies or silver exchange-traded funds (ETFs). You also can buy silver futures or options. While the outlook on silver is positive, it can be volatile and influenced by industrial demand, economic uncertainty, and supply constraints.
Where to Invest in Silver
If you’re ready to invest in silver, here’s a comparison of the best places to invest in the white metal:
Decide Whether Silver Investing Is for You
Investors have used silver to hedge against inflation, and many analysts predict silver’s time in the limelight has arrived. Though its industrial use may make it more volatile than gold, industrial applications continue to grow as a key driver of silver’s value.
Analysts predict silver’s finite supply and low production compared to its demand will continue to push up prices in the foreseeable future. Consider whether diversifying your portfolio with silver fits your financial situation, risk tolerance, and investment goals.
Frequently Asked Questions
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While silver reaching $100 an ounce is possible, it would likely require extraordinary circumstances, such as significant industrial demand spikes, severe supply shortages, or major economic and geopolitical crises. Analysts generally consider it a long-term or speculative scenario, as silver prices are influenced by a complex interplay of factors. For now, most forecasts remain below this level in the near to mid-term.
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Analysts predict a positive outlook for silver over the next five years, with the price rising to nearly $32 an ounce by January 2029. Some AI-based analysts forecast silver to hit $50 an ounce in five years, and others mark it as high as $167.87.
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Silver price forecasts for 2025 vary, with estimates generally ranging between $30 and $50 per ounce. Key drivers include rising industrial demand from green technologies, supply constraints, and its role as a hedge against economic uncertainty. While some analysts predict prices could exceed $50 under favorable conditions, the exact value will depend on market trends and macroeconomic factors.
