Silver prices shot up some 400% in the three years after the Great Recession, though they then collapsed about 70% in the following four years.
Precious metals, like gold or silver, tend to perform well during market slowdowns. But since the demand for these kinds of commodities often increases during recessions, their prices usually go up too.
Gold and silver during a recession
Gold has comparatively smaller demand from industrial applications when compared to the many uses of silver. In times of recession, falling industrial metal demand lessens the positive impact a recession could have on the silver price.
Gold and silver have historically kept up with inflation better than other asset classes, making them ideal investments for those seeking to protect their portfolio from inflation's effects.
Of course, we can use both gold and silver to meet expenses. For $1,000/month, you'll need nine ounces of gold and 600 ounces of silver to get through a two-year crisis period.
Once silver trades near $36 it will be a matter of time until it attacks ATHs. We also tip silver as the precious metal to buy for 2023.” Avi Gilburt: “Long-term, I'm looking for silver to hit $50, but that might take a few years. Prices could easily double in 2023 and the first half of 2024.”
Silver remains an attractive investment option in 2023, mainly as a hedge against inflation and other economic uncertainties. When the government prints too much money, the value of the paper currency tends to decline, and prices go up.
We can rely on these data to suggest that in ten years, Silver can grow to a minimum of $150 an ounce from the current price of $20.75 an ounce. On the upside, it could reach up to $750 an ounce if the conditions are right. These are all highly realistic in the long term.
Silver prices could touch a 9-year high in 2023 — with a bigger upside than gold. Silver could hit a nine-year high of $30 per ounce this year and become a better performer than gold.
The fastest way that silver can get to $100 an ounce is if inflation hits double-digit levels in 2022 and 2023. In 2021, the year-over-year inflation rate is about 9.75%. This is the highest rate of inflation in 40 years.
Many experts say that just before a recession is the best time to invest in gold. There are several reasons for this. For one, its value tends to hold steady or, often, even increase during these down periods. That's because investors flock to the safety of gold, which drives up its price — and your returns.
Historically, gold prices have remained stable — or even experienced an upswing — during recessionary periods. According to data from Schroders, a global investment manager, both gold and gold equities have performed well through five of the past seven recessions going back to the early 1970s.
Silver Demand
Having hit record highs in 2021 and 2022, silver industrial offtake is expected strengthen further by 2.6 percent y/y to 550 million ounces (Moz) in 2023. Silver industrial demand should be lifted from further gains in vehicle electrification, and governments' expanding commitment to green infrastructure.
Silver is sometimes referred to as the "poor man's gold." As precious metals, both silver and gold can rise in price if investors want a safe haven during times of economic uncertainty, and both can hold their value better than some other assets during times of inflation.
Cash, large-cap stocks and gold can be good investments during a recession. Stocks that tend to fluctuate with the economy and cryptocurrencies can be unstable during a recession.
Higher interest rates that often coincide with the early stages of a recession provide an advantage to savers, while lower interest rates moving out of a recession can benefit homebuyers. Investors may be able to find bargains on assets that have decreased in price during a recession.
Gov Capital, another algorithm-based forecasting service, issued a silver price prediction stating that the metal would close out 2023 at a potential average of $36.10, $52.18 by the end of 2024, and $74.75 by December 2025.
Some analysts recommend allocating 5–10% of your portfolio toward gold and silver. Others suggest allocating up to 25%.
“Silver can be highly volatile in the short term, due to relatively low liquidity, especially in the financial market,” says Agrawal. “The volatile nature makes silver a riskier bet than gold, and investors need to select the asset class that best suits their portfolio risk management requirements.”
Why $1000 per Ounce Silver is Unlikely to Occur. The price of Silver is currently just under $25 per ounce. At its peak, Silver was trading around $50 per ounce, so it would have to rise more than 100% in order for it to reach the $50 mark. It would need to increase 40x to reach $1,000 an ounce from today's numbers.
Silver (XAG) might reach $76.75 per ounce by June 2030 if the market conditions improve as expected. According to silver price predictions and forecasts, the precious metal's price will grow to $79.58 per ounce in the last six months of the year.
The silver spot price fell from $24 to $23 per ounce at the start of the 2022, as central banks combatted inflation by rapidly raising interest rates. Higher interest rates tend to be bearish for precious metals, as investors opt for interest-bearing savings accounts and other assets that generate guaranteed returns.
Silver jewelry has hailed as one of 2023's biggest jewelry trends, both on the runway and off. While many of us—myself included—never really left silver behind entirely, both the Spring/Summer 2023 and Fall/Winter 2023 runways proved that silver is the metal to wear for the months ahead.
Silver price stood at $24.77 per troy ounce
07/26/2023, Wednesday, 1:30 am CT. According to the latest long-term forecast, Silver price will hit $30 by the end of 2025 and then $40 by the middle of 2027. Silver will rise to $50 within the year of 2029, $60 in 2030, $70 in 2032, $75 in 2033 and $80 in 2034.
A Kitco News' online survey showed gold could top out at a record $2,100 an ounce in 2023, and silver could jump more than 50% to reach $38 an ounce this year. However, since Jan. 1, gold has only recorded modest gains, as silver backpedaled beneath the redline over the same time.