Silver Prices Could Skyrocket in 2017

While gold has managed to resist the price pummeling ordinarily stimulated by a raging stock market, its sister precious metal, silver, might offer even stronger speculative investment opportunity in 2017. The gray metal will most certainly mimic any upside gold movement this year. Silver’s specific fundamentals suggest its price might very well soon skyrocket at a rate of increase far beyond that of the yellow metal.
 
Recently, HSBC analyst Jim Steel observed that economic turmoil in Europe as well as the election of Donald Trump could readily prompt higher prices in silver. “Any revival in investor uncertainty, combined with price-sensitive buying at these levels and limited supply growth, is likely to be conducive to higher prices,” says Steel.
 
The interest in silver won’t be coming just from investors. Unlike gold, silver is an industrial metal. After its tepid 2016 performance, silver is expected to rise considerably because of purchases for industrial applications. According to Thomson Reuters’ prestigious Gold Fields Mineral Services (GFMS), solar panels will experience an 11% rise in demand. Also, Jim Steel points to a decline in silver-mine production in 2015.
 
HSBC foresees an $18.75 silver price in 2017, and $19.25 the following year. These prices are up from what GFMS estimates will turn out to be silver’s average price of $17.15 per ounce in 2016. Currently, Silver is $16.37, up $0.37 on the spot market. This thinning supply dynamic is exacerbated by the fact that when silver prices are this low, it’s more difficult for miners to produce the metal profitably.
 
Keep in mind too that silver’s all-time high price of $52 per ounce occurred in 1979 when the Hunt Brothers from Texas attempted to corner the market. Much more recently, silver reached almost $50 per ounce in April, 2011. In considering any investment, you should keep in mind that markets have memory. It’s much easier for a stock or a commodity to reach a price at which it recently traded.
 
Also, silver sales have been thriving at mints all over the world. Not only are silver coins selling well at the U.S. Mint, but at the Royal Canadian Mint and Australia’s Perth Mint as well.
 
In India, silver, like gold, is traditionally used as an integral part of the country’s wedding ceremony. In 2015, according to the Economic Times, India had consumed about 7,000 tons of gold. Of this amount, between 1,900 and 2,000 metric tons were consumed by the industrial sector. Even though silver consumption experienced a cutback in 2016, Surendra Mehta, General Secretary of the India Bullion and Jewellers Association, estimates a 15-20% increase in consumption in 2017 due to the increase in cash flow and farmers’ incomes from copious rains.
 
Don’t miss an opportunity to invest in gold at its current low price. It is the one stabilizing your portfolio needs as a safe haven and a counterbalance to stocks, and diversification is important too. You don’t want to pass up a fantastic speculative opportunity in silver.
 
For more information, call 800-777-6177 now, and ask to speak to a Fortress Gold Group representative.

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