Although the price of silver has recently dropped, many experts believe that it is poised for a bull market in the near future. In fact, some analysts believe that silver could hit US$100 per ounce by 2023.
If this happens, it would be a historical high, not seen since the late 1970s. To put this price surge in perspective, silver was trading at less than US$20 per ounce in 2020. At US$100 per ounce, investors could receive a tremendous return on their silver investments.
So, what could drive silver prices up to US$100 per ounce? Most of the experts point to increasing demand for physical silver, which is powered by several factors.
First of all, silver is seeing increasing demand from industrial applications. The automotive, solar, and electronics industries all rely on silver for their products. Silver is also seeing increased demand as a safe-haven investment asset. As geopolitical risks and economic turmoil increase in the world, investors turn to safe-haven assets such as gold and silver for protection.
Another factor driving silver prices higher is a decrease in mine supply. Silver mines have been shut down around the world, leaving less supply to meet increasing demand. This has caused prices to rise.
Finally, governments are turning more and more to silver as an alternative currency. As the US Dollar weakens, central banks and other governments are diversifying their reserves by adding silver to their portfolios.
All of this adds up to a potential silver price surge of unprecedented proportions. If it hits US$100 per ounce, investors could be in for a strong return on their silver investments. Of course, there is no guarantee that silver will reach these heights. However, the potential is there and it certainly makes for an interesting investment opportunity.