1. Next year, the average price of silver will be between 19 and 20 dollars per ounce, while the average price this year is 25 dollars. UBS Group AG estimates that the average price of silver in the second half of 2022 is 19, because the exchange-traded funds backed by silver may flow out.
2. As a key commodity in solar panels and electronic products, other functions of silver may boost the price for a long time. Metals Focus, a London-based research company, predicts that industrial use may reach a record level this year, and the company predicts that demand will be stronger in the future. It also predicts that in 2022, the price of silver will remain at this year's average level, about $25.
Three. actual interest rate
Silver had a hard time in the past year. Because it was targeted by Reddit retail investors at the beginning of this year, the buying frenzy of retail investors in February once sent the price of silver to the highest point in the past eight years. However, these achievements have now been steadily eroded. At present, the price of silver has dropped by about 9% at 202 1, making it one of the worst performing major commodities this year.
Four. Inflation hedging
When inflation rises, silver usually outperforms gold. He pointed out that "in the short term, the energy price is strong, and the balance between supply and demand in the oil, natural gas and oil markets is tight, which is beneficial to silver, because they will support macro investors to flow into commodities to achieve the purpose of inflation hedging." Federal Reserve policy makers described the recent inflation rise as mainly transitional, which made it widely expected that the central bank would announce plans to start reducing bond purchases after next week's meeting, although Federal Reserve Chairman Powell made it clear that the central bank would be patient with raising interest rates.
Verb (abbreviation of verb) investment demand
Retail investment remains strong, especially in the United States and Germany. This may help offset the decline in interest of institutional investors. The holdings of silver-backed ETFs have dropped from the historical high at the beginning of 20021,although it is still high compared with previous years.
Technical signal of intransitive verbs
In September this year, the price of silver fell to its lowest point since July 2020, which led to the so-called polarity test, that is, the price found support at the level where there was long-term resistance before. Since 2007, several tests in this field have led to a reversal, including last September, after which the price rose to just over $30 in February. By the close of 10, the price of silver had rebounded from the low point in September 12%. The overall prospect of silver will ultimately depend on the global recovery of the epidemic, monetary policy and the running path of gold.