Silver – The Rally is Yet to Come

by GoldMoney Staff
Gold Money

Silver prices have been on a rollercoaster ride over the past weeks, probably also fueled by social media activity. However, we think silver has solid fundamental support at these levels and risks over the medium-term are strongly skewed to the upside.

Four years ago, we presented our silver price framework in which we attempted to identify the fundamental drivers of silver prices (Silver price framework: Both money and a commodity, March 9, 2017). In summer of 2019, we published a report and revisited our silver price model. In that report we concluded that silver prices have “explosive upside”, (Silver prices with explosive upside, August 15, 2019). At the time, silver traded at around $16/ozt. A year later, they traded at $26/ozt, slightly below current levels (see exhibit 1). We are now looking at an environment where we once again expect risks to be strongly skewed to the upside, and the next move in silver could be much larger.

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