Silver Forecast & Price Predictions for Today, 2023 and Beyond

By: Cristian Cochintu

13:45, 01 March 2023


We look at the factors affecting the silver market and where should investors expect the market to move next, including some of the latest silver price predictions from analysts.

The end of 2022 was very strong for silver, climbing almost 35%, from a low of $17.77 to end the year at $23.97. Industrial demand hit a record high in 2022 and looks even stronger this year as China reduced its Covid restrictions, which should help improve output and limit the disruptions that plagued Chinese factories during the pandemic. 

The US dollar also weakened as inflation figures suggested it may have peaked. Despite inflation remaining high interest rate expectations for the US have come down, which has pushed the dollar off its recent highs. The strength of the dollar is a key driver for the gold price increase and decrease in 2023 and will also have a similarly important influence on the silver price. 

Silver will also be supported by the ongoing rising demand for cleaner, electric energy sources and technologies like cars. Governments continue to work towards ‘green’ energy policies and targets that will help push up the need for silver beyond the already high demand. 

The consensus among analysts is that silver could hit $30 per ounce in 2023. However, the price of silver has had a poor 2023 so far. 

Silver has fallen 10% since the beginning of the year, trading near the psychological threshold of $21.5 per troy ounce. 

Silver Forecast & Price Prediction – Summary   

  • Silver price prediction today:  A break below $20 could bring further declines to $16 according to charts and analysts. 
  • Silver price prediction 2023: The prospect of supply shortage and renewed interest from investors could send the price above up to $30 during 2023.  
  • Silver price prediction for the next 5 years and beyond: While some rating agencies forecast Silver price to reach $70 by 20230, the World Bank expects the metal to trade between $20 and $25.       

With you can trade Silver futures through CFDs if you want to speculate on price movements or invest in silver mining stocks and silver ETFs.   

Silver Outlook 2023 

Silver’s outlook in the coming few months depends heavily upon two factors: 

Investors are keeping an eye on the rate and pace of the US Federal Reserve and other central banks’ interest rate hikes in the coming months, due to how they are likely to affect precious metals and other commodities. 

The progress of the Russian conflict is also a key factor for metal prices, as currently, silver is also seeing some safe-haven demand, as the crisis rages on. This is also likely to continue due to expectations of slowing global economic growth this year, as well as a mild recession. 

It is important to understand that Silver serves two primary functions. It’s a precious metal with a monetary role and industrial metal with numerous and growing applications. It’s also in jewelry and silverware and other objects, of course, but predicting the price comes mostly from these two functions… 

Industrial Demand 

Because of silver’s chemical composition, it is one of the best electrical and thermal conductors of all metals. It also has growing used in the medical field, due to its antibacterial properties. 

In fact, silver has so many industrial uses that the Silver Institute calls it “the indispensable metal.” 

Industrial demand for silver is going up. 

One big reason is that many “green” technologies require silver. Electric vehicles use almost twice as much silver as internal combustion engines, while solar panels contain silver, and their installation is growing. 5G/mobile phone technology uses silver. And it’s clear that “greening” the infrastructure is a government priority. 

Industrial demand was a whopping 539 million ounces in 2022.  

“Developments such as ongoing vehicle electrification (despite sluggish vehicle sales), growing adoption of 5G technologies, and government commitments to green infrastructure will have industrial demand overcome macroeconomic headwinds and weaker consumer electronics demand”, the Silver Institute said. 

They also point out that “silver jewelry and silverware are set to surge by 29% and 72% respectively to 235 Moz and 73 Moz this year, main thanks to an unprecedented rebound in Indian demand.” 

This growth in industrial demand supports the silver price going forward. 

Investment Demand 

Investment demand for silver fluctuates each year, sometimes wildly. And that’s why it has the biggest impact on the silver price. 

In 2022, investment in physical silver grew 18%, to 329 million ounces, a new record. 

So, if investment demand grew that much, why wasn’t the price higher than just 3.7%? 

Because ETFs holdings saw their largest annual decline last year. And ETFs are where funds and institutions—who have deep pockets—typically invest, according to analysts. 

>> How to trade and invest in Silver 

Silver Technical Analysis 

Silver is approaching a key support area, after testing the higher edge of a descending channel at $24.5, as the daily chart shows. The $21.5 level was the main support during 2021 and become a strong resistance during 2022.  

For the imminent downside risks to fade, XAG/USD would need to hold this level. A false breakdown might be needed to confirm the bulls are in control and a channel breakout at $25 is more likely to follow. 

However, a break below $20 could bring further sell-offs up to the lower band of the descending channel, which could be as low as $16.   

Silver Forecast and Price Predictions 2023

Source: CAPEX WebTrader

Silver Forecast and Price Predictions 

In October 2022, the World Bank saw the silver price averaging $21 throughout 2023 and staying constant at the same level throughout in 2024. 

While analysts are typically cautious in issuing long-term forecasts for commodities, algorithm-based forecasting services regularly provide price outlooks for more extended periods. 

According to Trading Economics global macro models and analysts expectations, “silver is expected to trade at $21.79 per troy ounce by the end of this quarter”. The website expects the commodity to trade at $20.21 in 12 months’ time, or by February 2024. 

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 $24.489. The platform sees silver rising to an average of $36.581 by the end of December 2024, $53.840 by the end of 2025, and $76.561 by December 2026. 

Wallet Investor’s silver price forecast for 2023 was bullish. The website saw the precious metal closing 2023 at the $24.958 mark. The platform’s silver price forecast for 2025 saw silver growing even further to an average price of $29.096 by the end of that year, while its silver price forecast for the next 5 years has the commodity breaching the $30 price point to trade at an average of $33.041 by the end of 2027. 

In his book, “The Great Silver Bull,” Peter Krauth derived a valuation of $300 silver through technical analysis. Krauth has a model which forecasts that gold’s price will rise to $5,000 by 2030, which would drag silver’s price up to $300. This is due to gold’s use as an inflation hedge. 

“My thesis is that if you look at what’s happening with inflation, and if you look at how other assets are hurting,” he said. 

Here are some other 2023 Silver forecasts we have gathered from numerous analysts both inside and outside of the silver industry. 

  • David Morgan: “Silver tends to outperform 3:1 in bull markets. Once silver eclipses $30-50, the next move could soar to $70-$100.” 
  • Investing Haven: “Silver will move higher in 2023 because we expect the top in the U.S. Dollar to be confirmed. Moreover, our 2023 silver price forecast is supported by leading indicators like inflation expectations and the silver CoT report (silver futures market positions). 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.” 
  • Wells Fargo: “Commodities have been in a supercycle since 2020, with silver looking to play a special role, especially considering how cheap it is relative to other commodities. When you are in a supercycle, you often find high-beta plays do better. Between 1999-2011, silver did much better than gold.” 
  • Commerzbank: “Silver should benefit from the end of the Fed's interest rate hikes and the speculation on interest rate cuts that will start thereafter. The expected economic recovery following the end of the recession should additionally benefit silver as a precious metal with a high industrial use. With the easing of corona restrictions in China, silver demand should receive a further boost, as China is the largest consumer of silver.” 
  • Philip Newman, Managing Director of Metals Focus: “Industrial demand for silver was at a record in 2022, reaching 539 million ounces. With so many countries focused on energy security, silver saw new demand come from solar panel installations, which hit new highs this year. The automotive sector also contributed to additional demand, particularly the electrification of vehicles. The average silver content per vehicle is increasing.” 
  • OANDA: “A recession could put a damper on industrial demand but not enough to make silver a recessionary casualty. It is going to do well next year, just like gold.” 
  • Philip Newman/Metals Focus: “In 2022, 60% of silver was delivered by air, which was unprecedented. Silver usually travels by sea freight. [Freight by air is now] possible because of the high premium. Demand is so insatiable that they don't want to wait two or three months for a sea container to arrive.” 
  • Bank of America: "While upside may be limited near-term, mine supply is constrained, so a rebound of commercial purchases is set to ultimately push prices higher. [Supply] should also be supported by rising demand from solar panel and electric vehicle manufacturers, as the global community focuses on tackling climate change.” 

You can see that while many are moderate to strongly bullish, there is some disparity among the silver price predictions for 2023. 

When considering silver price predictions, it’s important to remember that high market volatility makes it difficult to give long-term estimates. As such, analysts and algorithm-based platforms can and do get their predictions wrong. 

Always do your own research before making an investment decision. And never trade or invest more than you can afford to lose. 

Ways to Forecast the price of Silver 

Lots of things can impact the silver price—the economy, the US dollar, and inflation expectations, among others—but historically these are the most influential drivers to look at when forecasting the price of silver. 

Investment Demand 

While demand for all of silver’s u12s01es fluctuates each year, they don’t change dramatically. Greater industrial demand will support the market, but any big spike in the silver price has historically come from one source, where demand fluctuates the most: investors! 

ETF holdings, where most funds invest in silver, are expected to grow in 2023, according to multiple analysts. With physical demand still elevated, the silver market could see higher total demand from investors this year. 

Based on anticipated investment demand, analysts expect higher silver prices in 2023. 

Gold/Silver Ratio 

The gold/silver ratio is simply the price of gold divided by the price of silver. Since both are considered monetary metals, they usually move together—which can give us clues when the ratio gets stretched in one direction or the other. 

The higher the ratio the more undervalued silver tends to be relative to gold; the lower the ratio the more overvalued silver is to gold. 

And when readings get stretched, they tend to correct themselves, as this chart shows… notice the ratio roughly corresponds to the highs and lows in precious metals cycles. 

Gold/Silver Ratio

Source: LBMA

As 2023 began, the ratio was about 76. While not at an extreme, it’s still 24% above its 55-year average. Goehring & Rozencwajg Associates forecast gold prices to increase in the long term and lead-silver but expect silver to surpass it, and the ratio to hit 20, the near-low gold-silver ratio of 1980. also expects to see the gold/silver ratio drop below 20. “The day that people rush back to gold and silver as monetary assets is the day you’ll see the ratio revert back to its 1980 low of 14, giving you enormous leverage to gold.” 

The gold/silver ratio suggests the silver price is likely to rise in 2023 according to market watchers. 

>> Gold Forecast & Price Predictions 2023, 2025, 2030 

Inflation expectations 

Inflation expectations are positively correlated to precious metals. They are a very strong leading indicator, certainly when combined with the EUR/USD effect. 

The long-term setup in TIPS (Treasury Inflation-Protected Securities) seems to be hitting a multi-decade low in the context of its rising channel. Can TIPS move lower? While everything is possible, the recent decline was equally large as the previous ones in 2008 and 2020. That’s why analysts believe TIPS is about to start a consolidation and move higher in 2023. 

Source: Google Finance 

Correlated with the USA 500 chart shown below, makes the point: a turning point in all three markets is not far away. All three should resolve higher in 2023 according to experts, even if they decide to continue their downtrend in the first half of the year. 

>> Dow Jones Forecast & Price Predictions 2023 and Beyond 



Precious metals need a rising Euro (falling or flat USD) in order to shine. EUR/USD should continue moving higher in 2023, according to market strategists and support the precious metals. 

Source: CAPEX WebTrader 

The major investment banks' price projections are pointing towards 1.15 for the end of 2023, once the pair will break the 1.09 inflection point.   

>> EurUsd Forecast & Price Predictions 2023 and Beyond 

Futures market (CoT) 

This is another leading indicator for silver. The way to think of this leading indicator for silver is a stretch indicator: 

When net positions in the futures market of commercials and non-commercials are stretched it indicates that the price is going to take a turn. 

This is not a timing indicator, we need the silver price chart to determine the timing of a turning point. 

Right now, as per the data on the center pane (blue and red bars), we see that commercials and non-commercials have extremely low net positions, historically low. This is a setup that supports rising silver prices. 

What we want to see in 2023 is the red and blue bars rising not so fast as the price of silver is moving towards 28 USD, the secular breakout point. 

Ted Butler, an expert in reading the CoT report in silver said: The silver CoT report remains unusually bullish, especially given the surge in price from 18 to 24. While a pullback is very likely, the more important thing is that the CoT as a stretch indicator does not indicate that the silver price rally is stretched, on the contrary. 

Silver Forecast COT

Silver Price History 

The silver markets have climbed from the $12 per ounce lows reached at the start of the Covid-19 pandemic, as investors have bought physical precious metals and financial instruments as safe-haven assets during ongoing economic uncertainty. 

The silver price reached a $28 high in August 2020 and ended the year around the $22 mark. 

The price then jumped to an eight-year high in February 2021, briefly touching the $30 per ounce psychological level, as the market attracted the attention of retail investors. 

In addition to investor sentiment, the silver price trend has found support from its growing use in industrial settings, which account for roughly half the metal’s annual demand. 

Physical silver demand climbed to a record high in 2021, led by an all-time high in industrial applications – silver is the best conductor of electricity, so is often used in high-end applications. 

The silver spot price had fallen from $24 to $23 per ounce since the start of the year, 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 traded up from $22.30 per ounce in late January to $26.90 per ounce in early March, a peak so far this year, as the market responded to the Russian invasion of Ukraine. But while the market traded between $24 to $26 until mid-April, it began to sell off sharply later in the month as the dollar strengthened. 

The price bounced back to $21.867 in the following two days but then went on the decline, closely following the trajectory of the gold price. 

The metal attempted to rebound in late July, trading above the $20 mark for several weeks, before shedding close to $2 from its value in 10 days on the back of further interest rate hike expectations – in the current climate, the Fed’s pledge to curb inflation is leading investors to favour the dollar instead of non-interest-bearing bullion assets. 

November saw the Fed make its fourth consecutive 75bps rate hike, taking its short-term borrowing rate to a target range of 3.75%-4% – the highest level since January 2008 – as it continues its mission to return the US economy to 2% inflation. 

The precious metal saw an outstanding few weeks towards the end of 2022, with a weekly gain of about 4.7% and a monthly gain of about 14.4%. This has largely been due to speculation about China loosening its current zero-Covid policy, even though official statements have denied this so far. 

The continuous futures contract for silver ended last year at $23.97 per ounce, up 3.7%.  

Free resources 

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Our demo account is a suitable place for you to learn more about leveraged trading, and you’ll be able to get an intimate understanding of how trading and investing work – as well as what it’s like to trade with leverage – before risking real capital. For this reason, a demo account with us is a great tool for stock investors who are looking to make a transition to leveraged trading. 

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