There are always people trying to predict the price movements of precious metals like gold and silver. Sometimes they get it right and sometimes they don’t. Can silver go over $30 or even reach the $50 level in the near future? There are two realistic scenarios where this can happen.
To get an idea, let’s look at what has been happening to silver in the last couple of years:
At the end of 2020, the price of silver moved up. Normally gold and silver move together, they might not make the same gains but to understand silver movements, one has to watch gold. Gold is still stuck at between $1,650 and $1,900 an ounce. This is called the resistance level. Whilst a lot of people have been predicting run-away prices for gold, it’s been stuck along the same range for months and now most people can only sit back and hope that something happens to get the price to rise in 2022.
What about silver?
The price position of silver has moved up. From a strong multi-year base starting with an impulse-driven first quarter that saw the silver price punching through some strong resistance to a breakthrough of $30. Many silver investors understand that silver is a long-term investment, between the 1980s and 2002 silver demonstrated how volatile it can be. At the beginning of the third quarter, silver began to back down and it disappointed a lot of people who thought it would reach $50.
Silver retreating isn’t always a bad thing. Lower prices encourage more people to buy silver. In October 2021, a lot of silver dealers began to see large money orders. These siphoned off the already scarce physical silver inventories. Besides more people buying, there was also a case of demand outstripping supply which is something that could have had a definite impact.
If you want to sell silver bullion you have to watch the spot price and wait for a high. One time recently during the Reddit silver squeeze the price of silver shot up by 20% only to correct back down 25%. Many investors used this price hike to sell silver bullion and buy it back at cheaper prices.
Make sure you also phone around or visit local bullion dealers and ask questions you need answers to. A good dealer will be upfront about his buy back prices. Mints don’t produce bullion coins 24/7 but they may run the production for a specific amount of time and produce a limited number of coins. So sometimes certain coins become scarce and when coins are scarce bullion dealers can offer to pay more money for pre-owned bullion than they usually would have.
Some catalysts affect the price of silver. Even when it looks like it’s falling, there is always something that can impact the price. We are still in the midst of a pandemic, the economy is in crisis, keeps inflation rising, the demand for silver in the industrial sector is rising and geopolitical tensions are heightened. Silver is always at the brink of something extraordinary. You could wake up one day and find that something had happened in some faraway country and caused silver to skyrocket overnight to $100. It’s not a matter of: “can” this happen but “when” will it happen.