1. Next year, the average price of silver will be between 19-20 USD/oz, while this year's average price will be 25 USD. UBS Group AG Group AG predicts that the average price of silver in the second half of 2022 will be 19, because the exchange-traded funds backed by silver may flow out.
Two. As a key commodity in solar panels and electronic products, other functions of silver may boost prices for a long time. Metals Focus, a London-based research company, predicts that industrial consumption may reach a record level this year. The company predicts that the demand will be stronger in the future, and it is expected that the price of silver in 2022 will remain at the average level this year, about $25.
Three. actual interest rate
Silver has had a hard year. Due to being targeted by Reddit retail investors at the beginning of this year, the retail buying frenzy once sent the price of silver to the highest point in the past eight years in February. But now these achievements have been gradually eroded. At present, the price of 202 1 silver is still down by about 9%, making it one of the main commodities with the worst performance 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 good for silver, because they will support macro investors to flow into commodities for the purpose of inflation hedging." Federal Reserve policymakers described the recent inflation rise as mainly transitional, which led to widespread expectation that the central bank would announce plans to reduce 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 exchange-traded funds have dropped from the historical high point at the beginning of 20021,although it is still high compared with previous years.
Six. Technical signal
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 previous long-term resistance level. 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 epidemic recovery, monetary policy and the running path of gold.