When it comes to silver, industry accounts for almost half of all demand! Plus, silver demand is growing because of industries like renewable energy and electric pepperstone canada vehicles. Just in 2020, 101 million ounces of silver was used in solar panels! Electric vehicles also require several times more silver than normal vehicles.
- Again, there isn’t a massive difference between supply and demand right now, but if the trend continues, this could really start pushing the price of silver up!
- Silver is the second most popular precious metal after gold and one of the go-to inflation investments.
- Don’t you hate when you return to a long thread, only to have to scroll past hundreds, maybe thousands, of comments to find the new stuff?
- Of course, then you wouldn’t be supporting Reddit.
- Then, we’ve got the diehard fans of silver who are seeing silver prices of $500 to $1,200 dollars, but I think the chances of this happening are pretty minimal.
- In 2021, silver demand was just 1.033 billion ounces compared to a supply of 1.056 billion ounces.
In January, US Inflation hit 7.5%, UK inflation hit 5.5% with the Retail Price Index going up 7.8%, while the Eurozone and Canada’s inflation rates both hit 5.1%. What’s more, the current economic conditions are set for more volatility and even higher inflation. Banks have started to raise interest rates to stabilise inflation, but by the looks of it, it could be out of their control. The more these commodities go up, the higher costs will be for companies and the more expensive it will be to produce goods. This will put a pressure on inflation and it will likely continue to rise over the coming months.
What are the pro’s and con’s when buying Silver over Gold?
Can we expect even higher prices by the end of the year? Well, some analysts expect silver prices to remain the same for most of the year, before falling down to $22 dollars in December. Other analysts are more bullish and are seeing prices around $26 to $28 dollars, but they also lean towards lower prices by December 2022.
Get the Reddit app
Silver is also widely used in electronics and also during brazing and soldering. Basically, there is a constant, growing demand for silver in the industry. In fact, this has led to the first silver market deficit in 6 years! In 2022, silver demand is expected to hit 1.112 billion ounces compared to a supply of only 1.092 billion ounces. It’s a small deficit of only 20 million, but it still shows that demand has started to outpace supply. In 2021, silver demand was just 1.033 billion ounces compared to a supply of 1.056 billion ounces.
Silver in 2022: Is it a good investment?
Then, we’ve got the diehard fans of silver who are seeing silver prices of $500 to $1,200 dollars, but I think the chances of this happening are pretty minimal. Silver is the second most popular precious metal after gold and one of the go-to inflation investments. When I’m looking axitrader review at everything that has been happening over the last few months, it feels like it’s a good time to talk about silver again. What drives the price of silver and is silver a good investment right now? When it comes to silver, there are a few things that influence the price.
Gold Price Correlation
We’ve seen that the demand for silver is going up and will continue to go up while the silver supply is shrinking. We’ve seen that there are inflationary pressures and geopolitical tensions around the world. Still, the current gold-to-silver-price ratio is just under 80 which means that silver is relatively cheap compared to gold lexatrade review right now. Plus, it is important to remember that assets like silver and gold are long-term investments so you should be prepared to be patient if you are buying in. The current inflation levels around the world are record-high. The US, UK and Eurozone are hitting record inflation levels that we have last seen 30 or 40 years ago.
