Silver Prices: 3 Reasons Why Silver Prices Could Soar

Silver Prices Could Skyrocket in 2016

Silver prices continue to face scrutiny, but investors shouldn’t be too bothered by it. Instead, pay attention to the fundamentals of the gray precious metal market; they suggest silver prices are undervalued.

You see, in the silver market, basic economics are at play. Demand is surging and the supply is expected to plummet. In fact, in some cases, it already is plummeting downward. This is a perfect recipe for higher silver prices ahead.

Take a look at the chart below that shows the movement in silver prices over the last few yearssilver spot price chartChart courtesy of www.StockCharts.com

Looking at the chart above, one would think demand for silver is anemic and the market is flooded with the gray precious metal, as prices have plunged more than 50% in just a couple years.

This is not the case and don’t let anyone tell you otherwise!

To give you some perspective, consider the sales of silver coins by the U.S. Mint. In 2012, the Mint sold 33.74 million ounces of silver in American Eagle coins. In 2013, sales of these one-ounce silver coins jumped to 42.67 million. In 2014, the U.S. Mint sold 44 million ounces of silver, making a then record-high. So far in 2015, the U.S. Mint has already sold 44.8 million ounces of silver in American Eagle coins, which is more than the previous year’s sales and there are still a few days left until 2015 ends. (Source: “Bullion Sales/Mintage Figures,” U.S. Mint, last accessed December 4, 2015.)

Seeing the sales at the U.S. Mint, it seems as if lower silver prices are actually driving investors to the market, literally the opposite of what we were told when silver prices were going lower in 2013 and 2014.

Mind you, demand for silver isn’t high at only the U.S. Mint; we have been hearing a lot about silver demand from other mints around the world, as well.

Next, we have the supply situation. When you look at the supply side (mine production), it’s clearly plunging and this phenomenon shouldn’t go unnoticed.

Take Canada as just one example. In the first nine months of 2015, silver mine production from Canada amounted to 285,953 kilograms. In the same period a year ago, this figure was 374,184 kilograms. (Source: “Production Of Canada’s Leading Minerals,” Natural Resources Canada, last accessed December 4, 2015.) In the U.S., silver mine production has also declined in 2015.

Understand this: Demand and supply aren’t the only factors suggesting silver prices are going higher. Investors need to pay attention to the gold-to-silver ratio as well. This ratio simply refers to how many ounces of silver are needed to buy an ounce of gold. Once again, check out this long-term chart below, this time of the gold-to-silver ratio since 2006.

Read More

Article Index
Silver Price Forecast

Silver Prices Best Performing Precious Metal Today Silver prices jumped on Monday on declines in the U.S. dollar and bets the Federal Reserve will be cautious when increasing interest rates. The silver price for May delivery gained 3.9% to $15.98 a troy ounce on the Comex division of…

Silver Prices Snaps Two-Day Decline The silver price appreciated more than one percent on Tuesday, snapping a two-day decline, as risk-averse traders hurried to buy safety-haven investments and sell risky assets like stocks amid a global stock-market selloff. The May silver price rose to as high as $15.22…

Key Ratio Says Silver Prices Could Soar Silver prices are setting up to reward investors big-time. Don’t listen to the noise suggesting the gray precious metal isn’t even worth looking at. Here’s what you really need to know: From a fundamental perspective, silver prices are way too undervalued.…

Gold and silver prices are being driven higher by global economic weakness and the growing number of central banks implementing negative interest rates. While gold and silver prices normally have a negative relationship to a strong U.S. dollar and low interest rates, that’s not the case this time…

Don’t roll on the floor laughing; you could see silver prices reach $100.00 and above. The projection was made by an outspoken leader in the precious metals mining industry in an audiotaped interview posted on the Money Metals Exchange podcasts page. “I know that at $14.00 or $15.00…

What a difference three months can make. Currently trading near $15.00 an ounce, silver prices are up almost nine percent since the beginning of the year and at their highest levels since November. While silver bulls may see the current surge in silver prices as a great time…

Silver Prices to Skyrocket in 2016? It’s Possible Silver prices remain low, but don’t be shocked if they move to the upside in 2016. As it stands, there’s too much noise regarding precious metals being bad investments. One of the biggest reasons behind this narrative is that the…

Silver Price Forecast Shows 263% Gain As 2015 draws to a close, silver prices may finally rebound from their disastrous four-year slump. A majority of economists believe the Federal Reserve will raise interest rates this week, which could drive a lot of money out of the bond market…

Silver Prices Could Skyrocket in 2016 Silver prices continue to face scrutiny, but investors shouldn’t be too bothered by it. Instead, pay attention to the fundamentals of the gray precious metal market; they suggest silver prices are undervalued. You see, in the silver market, basic economics are at…

Silver Prices Could Be Poised to Skyrocket Although silver prices have been down in the dumps lately, there are some positive signs for the silver bugs. Anyone interested in silver investing should pay attention to this incredible indicator that’s predicted huge gains for silver prices in the past.…

Here’s Why I’m Still Bullish on Silver Prices Silver prices are trading at levels last seen in late 2009, but that doesn’t mean investors should completely ignore the gray precious metal. Keep this in mind: the lower silver prices go, the better the opportunity. Before going into details,…

Here’s Where Silver Prices Could Be Going Next Silver prices currently stand at a level where even the long-term silver bulls are shy of predicting their direction. The uncertainty around silver prices is significant and pessimism towards the gray precious metal is soaring. With this in mind, I…

Could Silver Prices Hit $30.00? It’s Possible Silver prices are down for the year, but investors must think long-term. The gray precious metal looks undervalued; don’t be surprised if silver prices see a massive move to the upside. If you look at the chart of silver prices below,…

Why Silver Prices Could Soar in the New Year At first glance, the decline of silver prices seems to defy everything we know about precious metals. But there is strength underlying the surface weakness of precious metals that goes unnoticed by most of mainstream financial press. Precious metals…

If This Happens, Silver Prices Could Skyrocket in 2016 Silver prices are not really telling what’s happening in the silver market. The demand for the precious metal is solid despite silver prices being down slightly for the first 10 months of 2015. Just like gold, silver investors must…

Physical Shortages Could Send Silver Prices Soaring, Says Analyst Silver prices may be down now, but think long-term. There are a few factors I am closely watching that suggest silver is going to surprise investors in a big way. This may be bold, but I am not ruling…

There Factors Point to Considerable Upside for Silver Prices Since the summer of 2011, silver prices have fallen by roughly 70%. But since the beginning of October, prices have rebounded. Currently trading near $15.75 an ounce, silver prices have climbed 8.6%. There are a number of factors that…

Those Betting Against Silver Prices Now Could Be Kicking Themselves Later Silver prices have fallen a long way from their 2011 highs, but there are some indicators showing an upswing for the silver price forecast. Silver had previously hit a peak of $50.00 in 2011, but the weight…