After some ups and downs, the price of Silver is trading at around $24, the same level as at the start of the year. Economists at Commerzbank analyze the precious metal’s outlook.
In its latest publication, the Silver Institute revised industrial demand for this year and previous years significantly upwards. Metals Focus also assumes that the silver market will remain in deficit for the foreseeable future. The Silver price has hardly benefited from this so far, which can be explained by general economic concerns, higher interest rates and weaker investment demand, including considerable ETF outflows. Over next year, these adverse factors are likely to become less significant and turn into the opposite.
We remain convinced that the Silver price has upside potential and should also make up ground versus Gold. We are forecasting a price increase to $30 by the end of 2024, which would bring the Gold/Silver ratio down to 72.