Silver Price Predictions for Next 5 Years: Is Silver a Good Investment in 2023?
If you’re looking for the silver price predictions for next 5 years and want to know what the price of silver will be in 2023, 2025 and 2030, you’re in the right place. In this article, we will dive into the silver price history, technical analysis and summarize what experts’ opinions on the silver price forecast.
Despite a strong start in the first quarter of 2022, last year proved to be a disappointing year for silver, as its prices averaged $21.73 per ounce, down from its 2021 level at $22.73, according to the latest report from the London Bullion Market Association (LBMA). Silver has underperformed gold throughout 2022 as investment interest in the commodity has waned.
Meanwhile, recession concerns tilted silver prices to go down, as traders worried about low demand for the metal as an industrial input for goods with high electricity conduction needs, which was reflected by its sharp underperformance to gold in January this year. Still, projections of weak supply limited the fall, as COMEX inventories remained under pressure and LBMA stockpiles plunged amid outflows to India.
What are the factors weighing on the silver market and where should investors expect the market to move next? In this article, we look at some of the latest silver price predictions from analysts.
XAG/USD rebounds, but there’s a catch
Silver (XAG/USD) price appears to be consolidating after a sharp decline in the past two weeks. The precious metal tanked as the price faced an intense rejection from the $25.4-$26.8 supply zone. Silver price per ounce is currently in the midst of a recovery after closing the last two weeks with a 7% loss.
After a 1.5% bounce last Friday, XAG/USD is trading sideways on Monday. At press time, Silver is trading at $23.54.
While Gold price has also dropped significantly in the last two weeks, Silver is leading the latest drop in commodity prices. In fact, Copper and Zinc have also shown a negative price action during this time. There are multiple factors behind this drop in Silver price per ounce, but the biggest of them all is the slower-than-expected recovery in China.
Recent stats show that the Chinese economy is still lagging in recovery after the end of lockdown restrictions. This has intensified the recession fears and triggered a sell-off in Silver, Copper, and Zinc. Furthermore, a strong bounce in the US Dollar Index (DXY) further intensified this selling pressure. Historically, Silver and Gold have shown a strong inverse correlation with the DXY index. At the time of writing, the DXY Index stands at a level of 103.3.
The XAG/USD chart suggests that the ongoing correction may go much deeper. This is because the price is yet to hit the 0.5 fib retracement level, which usually results in a potential reversal. This level currently sits at $23.04, which is 2.1% below the current price. The ongoing bounce is due to the bullish RSI divergence on 4H chart.
Therefore, the Silver price prediction of $23.04 appears to be quite valid, considering the momentum behind the ongoing downward push. To avoid this bearish outlook, Silver needs to reclaim the $24.6 level. However, on a higher timeframe, Silver and Gold seem to remain bullish. The next month’s FOMC meeting will play a key role for commodity prices.