Investors and financial analysts alike have long speculated about the possibility of silver’s price reaching the US$100 per ounce mark. The precious metal has seen its fair share of bull cycles in the past, often reaching higher highs only to see prices plunge just as quickly as they rose. Still, many remain bullish on silver, believing that the metal could break the US$100 per ounce barrier in the near future.
The key factors that could drive the silver price up to the US$100 per ounce level include the widespread rollout of innovative technologies such as 5G networks, increased industrial demand from emerging markets, and a weakening US dollar. 5G networks, for example, are predicted to increase the demand for certain metals such as silver for use in chip production. Additionally, the emergence of substantially more consumers in developing markets such as India and China could act to push up silver demand, given their habit of consuming more of the metal than other countries. To top it off, a weakening US dollar could also further bolster silver prices as the physical demand for the metal could increase.
Speculations aside, yield a diverse range of opinions when it comes to silver’s target price and the likelihood of the metal reaching the US$100 per ounce mark. Those who are bullish on silver harken back to 1980’s bull market in the metal and point to the fact that the metal has cleared the US$50 per ounce mark in the past. Conversely, bearish sentiments point out that silver has exhibited a great deal of market volatility throughout its history and has failed to maintain its heights above the US$50 per ounce level for extended periods.
As of the writing of this article (June 2021), the silver price is hovering around the US$27 per ounce mark. Although some pundits believe that the metal could indeed reach the US$100 per ounce mark by 2023, it is by no means a guarantee. Still, given the forecasted technological advancement, boom in emerging market demand, and a weakening US dollar, silver could continue to prove its status as a safe haven asset and potentially surpassed the US$100 per ounce milestone in the coming years.
