Silver Price Trend and Forecast

Regional Price Overview

Get the latest insights on price movement and trend analysis of Silver in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Silver Price Trend for the Second Half of 2023

Silver prices continued their bullish run in the global market during the last two quarters of 2023 as well. The third quarter was steadier and more stable compared to the final quarter as the last quarter was relatively more positively inclined.

Silver Price Chart

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The downstream demands from the jewel and electronics industries were still steady during the early months. However, the onset of the festival seasons across the globe and the wedding season in India, one of the biggest jewellery markets in the world fueled the downstream consumption, which speedily escalated the price trend in the upward direction. Overall, positive market sentiments were witnessed in H2’23.

Analyst Insight

According to Procurement Resource, given the current demand trajectory, a further escalation is expected in the precious metal’s price graph going forward.

Silver Price Trend for First Half of 2023

In the first two quarters of 2023, the prices of silver showcased a volatile trajectory. In addition to being a valuable metal in jewelry production, its exceptional conductivity for both electricity and heat makes it an essential component in the electronics industry and thus is used in everything from printed circuit boards to high-performance electrical connectors.

The downstream demands from the jewel and electronics industries were still steady during the early months. However, the onset of the festival seasons across the globe and the wedding season in India, one of the biggest jewellery markets in the world fueled the downstream consumption, which speedily escalated the price trend in the upward direction. Overall, positive market sentiments were witnessed in H2’23.

Analyst Insight

According to Procurement Resource, given the current demand trajectory, a further escalation is expected in the precious metal’s price graph going forward.

Silver Price Trend for Second Half of 2022

The last two quarters of 2022 struggled to maintain the momentum of silver prices as the global market of silver fluctuated throughout this phase. In the US markets, the increase in the interest rates by the US Federal Reserve to keep the economic conditions afloat hampered the growth of the silver price trend.

The slow rate of industrial development also concerned the traders of silver as the onset of a phase of recession amid the weak condition of the global economy restricted the spending capacity of consumers. However, the usage of silver components in the renewable energy sector, its applications in the production of automobiles, and the increased demand for 5G enabled devices supported the dynamics of the silver price trend.

Analyst Insight

According to Procurement Resource, the price trend of Silver are expected to follow an oscillating trajectory in the upcoming quarters as the demand and market sentiments of downstream industries seem to be fluctuating.

For the Second Quarter of 2022

Asia

In April, the silver prices in China were around 4958 RMB/MT rising by 3.94% since the beginning of the year. With rising interest rates, the stocks in Asia faced uncertainty in the third week of May as silver prices climbed to 61,625 Rs per kg in India and later crossed the 62,000 Rs per Kg mark. By the third week of June, per kg price of silver reached Rs. 60,609.

Europe

By the end of May, silver prices were traded at around 22.22 USD/ounce, rising by 0.50% in a week.

North America

In the US, by the end of the second quarter, silver prices witnessed a two-year low at 20.23 USD/ounce. In the beginning of the quarter, however, the price at reached a high of 25.91 USD/ounce which later dropped by the third week of May.

The price then stabilised and hovered around 22 USD/ounce for the rest of the quarter. Nonetheless, silver prices had been more volatile than gold due to factors like record high inflation as well as supply constraints in regions with high demand.

For the First Quarter of 2022

Asia

In early trade on February 14, 2022, the average price of the metal was 4882.67 RMB/kg, a daily fall of 2.53%. The price trend of precious metals had a solid long-term convergence, and the trend was essentially the same. During the first quarter of 2022, silver prices soared.

Stocks and bonds in the United States sank dramatically overnight as inflation statistics in the United States again exceeded expectations. Inflation data boosted investors' hedging and hedging sentiment. The price of metal increased as a defensive asset to safeguard against excessive inflation. The actual negative interest rate in Q1 2022 was beneficial to precious metals. The market was anticipating the announcement of an interest rate rise.

Latin America

In Q1 of 2022, gold and silver prices stayed constant or dropped, with interest rates and global monetary policy influencing patterns. However, additional losses and new highs are predicted in precious metals in the coming years. Mining firms in Latin America were benefiting from recent increases in gold and silver prices, which had raised cash flows and treasuries, allowing them to invest in asset optimization and, in some cases, move forward with development projects. Silver prices were recorded at 40 USD/oz during Q1 of 2022.

For the Fourth Quarter of 2021

Asia

In India, growing industrial usage of the metal following the pandemic provided people with windfall investment gains in Q-4 of 2021. Investors accessed the white metal's potential after the financial market regulator launched a Silver Exchange Traded Trust, as prices outperformed gold by as high as 6.41%. The metal is gaining popularity among investors. It is currently both an investment and a commodity for industrial use. Its application is projected to increase in the future as the global economy recovers.

Europe

Prices of precious metals fell in the second period of 2021, owing to weakening market mood and weak physical demand. Prices fell due to dwindling commercial demand. Since mid-November, silver prices had experienced a significant retracement. Industrial demand for the metal had dwindled, putting downward pressure on prices. The metal’s near-term prospects are largely dependent on the sustainability of the world economy, which has been harmed by a recurrence of COVID infections, notably in Europe.

North America

Spot prices resumed their upward trend throughout the Christmas period, climbing 5% in two weeks to reach 23.29 USD/oz, up 4% on 13 January 2022, but they have since retreated somewhat to 23.11 USD/oz. Silver is currently about 22% below its eight-year peak of 29.585 USD/oz reached in February 2021.

Expectations of a price rally have been developing in reaction to rising inflation and socioeconomic uncertainty, as central banks, particularly the US Federal Reserve, signaled they would ease fiscal stimulus and begin raising interest rates in the new year.

For First, Second and Third Quarters of 2021

Asia

In India, silver prices were about 5% higher in August 2021, than they were when they opened at 68,254 INR/kg in January 2021. The price also outperformed gold's in the due course. This was due to silver's dual nature. It is classified as a precious metal as well as an industrial metal. Apart from this, the metal's demand-supply imbalance was exacerbated by dwindling mine supply.

Its diminishing mine supply aided the price increase. Apart from that, the base metals complex also saw a broad-based rise, with prices surging to multi-year highs. The price increased by 888 INR/kg, to 62,452 INR/kg in July 2021. In China, investors jumped into silver investments, boosting Shanghai prices while also enhancing the performance of connected equities and funds. Silver prices in China increased to their highest level since September 2020. Shanghai Futures Exchange prices closed 9.27% higher, at 5,939 RMB/kg.

Europe

Silver had numerous setbacks since the outbreak began. Prices increased by more than 47% in comparison to FY 2020, and settled at 29.418 USD/oz on February 1, with a Reddit-induced surge pushing the metal's value to its highest level since February 2013. Silver prices subsequently had a wild decline, eventually closing at 21.485 USD/oz on September 29, the lowest level since July 2020. The price trend began a precipitous decline in June 2021.

North America

Demand increased significantly in May 2021 when compared to the previous 12 months. The metal was trading at over 27 USD/oz, up 74% from a year earlier when it was trading at roughly 15.5 USD/oz. However, demand for the semi-precious metal was greater than supply in 2021. Its application in industry was a significant factor in its increase in value. Additionally, green technologies increased demand for industrial metals like silver, which is utilised in the manufacture of solar panels.

It also benefited from the world economy's reopening during the coronavirus pandemic, as industrial production increased, and investment demand remained stable. Conversely, in September 2021, silver price value fell to its lowest level in more than a year as the US currency strengthened. Spot silver plunged 4.3% in a single day to 21.50 USD/oz, while December 2021 prices fell by the same proportion.

Latin America

In 2021, prices remained essentially constant or decreased, with trend dictated by bond yields and global monetary strategy. Mining businesses throughout Latin America reaped the benefits of the increase in gold and silver prices, which boosted cash flows and treasuries and enabled them to engage in asset optimization and, in some cases, development projects. Silver followed the aforementioned track, rising to roughly 27 USD/oz in mid-2020 and then declining to around 25 USD/oz in 2021.

For the Year 2020

Asia

Silver futures in August 2020, India, closed over 2% or 754 points lower at 35,453 INR/kg. The trend was widespread. The coronavirus outbreak shut down major production hubs worldwide, most notably in China, the world's factory and the virus's origin. In February, China's factory activity fell to its lowest level in history. According to official figures issued by the Chinese administration, industrial output in the country fell 13.5% year on year in January-February, compared to a 6.9% growth in December.

Prices increased in China during the fourth quarter as the government sought to decarbonize the entire economy. Increased demand for climate-friendly items such as electric vehicles and solar panels reportedly boosted its value as well.

Europe

When the Covid crisis struck in February 2020, silver compressed a half-worth decade's of market activity into only five months. Prices fell 40% to the lowest level since 2009, hovering about 12 USD/oz in March 2020. On the other hand, the price soared to eight-year highs following that, just short of $30 in February 2021. However, the increase slipped away as quickly as it had arrived, leaving the market stagnant for five weeks as much of the speculative buying was immediately reversed.

North America

The price had risen 34% in July alone, exceeding the performance of each and every leading international financial asset. July was one of the strongest months on record for the metal, with the largest monthly gain since 1979. However, in August 2020, the metal maintained its year-to-date price performance.

From 11.64 USD/oz on March 18, 2020, the price soared more than 140% in August, reaching a level not seen since 2013. The price increase was spurred by its intrinsic safe-haven status, inflation fears, extraordinarily low interest rates, and continuous central bank liquidity injections. The increase in price indicated increasing interest in the metal as an investment vehicle by both retail and institutional investors.

Latin America

Regionally, Central and South America saw a 13% drop in its price. Nonetheless, Mexico regained its position as the world's biggest silver producer. Mexico's potential was enhanced by a bull market and rising demand. Mexico produced roughly 178 million ounces of the metal in 2020, while Peru produced 110 million ounces. The LBMA reported that the average yearly price jumped from 16.19 USD/oz in 2019 to 20.52 USD/oz the year before, a 27% year-over-year gain.

Following the mining industry's fall in mineral demand in 2020 as a result of COVID-19, a slump in the prices increased pressure on Latin America's mining corporations, as enterprises battled to respond to market volatility caused by the coronavirus and government steps to slow its spread.

Procurement Resource provides latest prices of Silver. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.