Silver Price Forecast: Is Silver Going To Bounce Around In The Next Few Months?

Thursday, April 20, 2017

silver bricks

It’s no secret that silver is worth less than gold, and as a result, silver’s price often seems more volatile by comparison. When forecasting the price of sliver for the next few months, we have to wonder: Are there strong signs of volatility in either direction ahead? Effectively, a case may be made that there are three indicators that show silver is headed for a roller coaster ride. Let’s see if we can make that same case with some recent headlines:

Seeking Alpha Sees Several Signs Of Silver Volatility

Commodity expert Andrew Hecht at Seeking Alpha recently had some interesting things to say about silver. In his summary points, Hecht points out that there is “shock and awe” ahead for the precious metal, which is a headline interesting enough to grab the interest of any commodities investor. But what exactly is it about silver that might create this level of shock and awe?

Pointing out that silver has a “penchant” for the sort of volatility that you might not see in other markets—despite the occasional bout of inaction on the part of the precious metal, Hecht also notes that silver is sometimes a growth leader in the precious metal world, pointing to its recent low of about $13 per troy ounce in late 2015. As of this morning, silver currently stands at about $18 per troy ounce, a gain of almost 40%.

But why the volatility, and why might it be in the cards for silver? Because with silver following gold, and with potentially startling headlines in the coming months as it relates to foreign affairs, precious metals both stand to gain. Moreover, it’s silver with its humble price that stands to make the most impressive percentage gains, as it usually does.

Does Silver’s Volatility Depend On Gold?

Silver tends to track gold in many cases. Moreover, the current consensus in silver forecasts appears to be no different. While gold’s overall progress has been steady for the past few years—despite the occasional bumps and bruises along the way—it doesn’t take much to send investors moving to a hedge investment like precious metals. And that news tends to be just as good for silver as it does for gold.

If we see bumps on the way, it will be silver’s performance that will be interesting to watch, as the “bargain” precious white metal stands to make big gains. If it does tick down, the percentage points also could mean significant losses for big-time silver investments.

What Will Cause Silver Volatility This Year?

Silver is just as strong a hedge investment as gold in times of turmoil. Silver’s industrial uses also put added demand on the precious metal during these times, which makes it particularly attractive to investors who don’t always trust the inherent value of gold—although that argument would merit an article all its own. For now, there’s a good chance that if there is volatility in world markets and subsequently in precious metals, it might be silver that sees the biggest swings for investors

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Darren Capriotti

Darren Capriotti has been a market analyst for the past decade and is an expert in precious metals. He prides himself on his ability to analyze the market and offer true value to investors with questions about gold, silver, and other precious metals. Highly educated, incredibly passionate, and more accurate than most, Darren offers a true, unbiased look into what investors can expect in the precious metals market. You can reach Darren at dcapriotti@gold-eagle.com.