Despite multiple record highs for gold this year, silver prices have consistently climbed as well. An analyst predicts that silver prices could reach $40 per ounce or higher by the end of the year, driven by a persistent supply-demand imbalance. Peter Spina, President and Founder of GoldSeek.com, highlights that silver is set for a significant surge due to its strong fundamentals.
Silver supply shortages have continued for the fourth consecutive year. The Silver Institute forecasts global silver supply for 2024 will be around 1.004 billion ounces, while demand is expected to hit 1.219 billion ounces, echoing the deficits seen in 2021, 2022, and 2023.
This week, December silver futures rose by 2%, closing at $33.895 per ounce. According to Dow Jones Market Data, this price is on track to become the highest settlement since November 29, 2012. Year-to-date, silver prices have surged approximately 41%.
Spina notes that this strong rally in silver is attracting increasing attention from investors and speculators. He believes this indicates a rapid upcoming price increase, with silver likely surpassing $40 per ounce by year-end.
If realized, this forecast would bring silver futures close to the all-time high settlement price of $48.7 per ounce set on January 17, 1980. Concurrently, gold's price surge has also drawn attention, hitting a record intraday high of $2,755.40 per ounce. On Monday, December gold futures were at $2,736.40 per ounce, making silver appear relatively undervalued.
