Looking ahead, the ongoing negative interest rate environment, with European and Japanese central banks cutting benchmark rates deeper into the red to promote growth, could push investors toward precious metals as a more stable store of wealth.
Moreover, unlike gold, silver sees much higher industrial demand. The precious metal enjoys heavy industrial demand that benefits from an expanding global economy.
“HSBC projects a silver price of $18.75 an ounce in 2017 and $19.25 the year following. That’s up from what GFMS thinks will be an average of $17.15 an ounce in 2016,” according to Barron’s.
For more information on the silver market, visit our silver category.