Major investors are betting on silver in 2018. In November 2017, TD Securities, investment bank wing of one of Canada’s Big Five banks, recommended trading long on silver with the expectation that the silver price will hit $20 USD by the end of 2018. That’s a 17 percent gain compared to the end of 2017. There are two main factors behind TD Securities’ prediction. The first is the widespread belief that the Fed is overestimating inflation. Lower inflation over the next year also means lower interest rates. Fixed income investments will suffer and investors will likely turn to precious metals like gold and silver instead. The second factor is a weaker American dollar, something Goldman Sachs recently predicted for 2018. Lower consumer spending could even hamper U.S. growth and a record streak on stock markets.
Silver has proven strangely stable in recent months, a major change for a precious metal known for its volatility. Typically, silver prices vary much more widely than gold prices do. Silver volatility can make investing in silver difficult for those who worry about day-to-day performance. Silver has been known to take major dips, but can also suddenly explode. Silver volatility can be an opportunity for short-term investors who pay attention to silver prices, but the important thing to keep in mind before investing in silver is that long-term silver prices perform well against inflation.
Whether your goals are long term or short term, it always pays to stay up to date with silver prices when you have a substantial silver position. Depending on your investment goals, it’s not uncommon to have anywhere from 5 to 20 percent of your portfolio invested in precious metals, largely silver. If silver predictions come to fruition, you may want to start selling off silver to maintain balance in your portfolio. You can check up on live silver prices and silver price history charts on silver dealer sites like Silver Gold Bull.
However, lower prices now mean that it’s a great time to increase your silver position, especially after seeing the effect news NAFTA’s days may be numbered had on stock markets. Some even think that the U.S. suddenly pulling the plug on NAFTA could trigger a market crash that would send silver prices skyrocketing.
No one is looking at silver prices and expecting an explosion yet, but the growth potential for silver is there and it’s a lot bigger than gold’s. There’s a major supply crunch on silver with mines producing less and less silver every year. That’s made silver bars and silver coins bestsellers with silver dealers like Silver Gold Bull as investors expect silver prices to catch up to basic economics. Much of the silver used in industry isn’t recyclable and low prices mean that even salvageable silver is often left untouched. But conditions are changing. Next year’s outlook for silver is positive. With TD Securities predicting a 17% increase in price, now is a great time to invest in silver.