Silver Price Surges Past $50: Peter Schiff Predicts $100 per Ounce
The silver market has witnessed a significant surge, with prices blowing past the $50 mark to reach a record high of $50.40 per ounce. This development has exceeded the 2011 peak and the 1980 intraday record of $50.36. Financial commentator Peter Schiff believes that silver is still undervalued and predicts that prices could climb to $100 per ounce.
Factors Driving Silver Prices
Several factors are contributing to the surge in silver prices. One key driver is industrial demand, particularly from sectors like solar panels, electric vehicles, and semiconductors. As these industries expand, they require more silver to meet production needs. According to analysts, the global supply of silver continues to lag behind demand, creating a structural supply deficit.
Supply Constraints
Global mining output has struggled to meet annual demand, resulting in a supply deficit. Warehouse inventories are also low, further tightening supply and putting upward pressure on prices. Deliveries to major exchanges are high, while liquidity remains limited in global markets.
Investor Interest
Investor interest in silver has surged alongside its price, with many treating silver as a safe-haven asset similar to gold. Gold has also been reaching record levels this year, prompting investors to diversify their portfolios. Silver offers a more affordable alternative with significant upside potential, making it attractive for both individual and institutional investors.
Investment Options
Investors can gain exposure to silver through various exchange-traded funds (ETFs), such as:
- iShares Silver Trust (SLV): Currently trading at $44.56, up 2.67% for the day
- abrdn Physical Silver Shares ETF (SIVR): Priced at $46.74, reflecting a 2.68% gain
- Global X Silver Miners ETF (SIL): Trading at $73.95, up nearly 4%
- Amplify Junior Silver Miners ETF (SILJ): Risen 6.18% to $24.84
Market Outlook
Analysts and commentators like Peter Schiff believe that the rally in silver prices is far from over. With industrial demand, investor interest, and supply shortages driving prices higher, silver’s appeal is likely to strengthen. While $100 silver may seem ambitious, current market conditions support continued upward pressure.
As industries grow, currencies fluctuate, and investors seek safe assets, silver’s dual nature as both an industrial metal and a safe-haven asset makes it an attractive investment option. Investors looking to enter the market should act carefully but may find opportunities in both physical silver and ETFs
