Silver Prices Set To Bust Records Soon, But Not How You Think

Silver is headed to record levels within the next 36 months, according to a veteran commodities analyst. But when it happens don’t expect shocking newspaper headlines.

“We expect to see record prices on an average annual basis at some point in 2024-2026,” says Jeff Christian, managing partner of commodities consulting company CPM Group in a recent video. “We’ve been saying that for some time.”

The veteran commodities expert says the company still expects to see that.

However, most people will misinterpret that to mean that it will get over $50 a troy ounce, up from a recent $25.

The price of the white metal hit an all-time high of $49.51 a troy ounce in 2011, according to data from TradingEconomics. That compares to recent prices around $25.

The price also jumped near to that level in 1980.

However, Christian, notes that in both cases the ultra-elevated levels didn’t last. Instead these highs were spikes, or momentary peaks that quickly receded. But those fleeting events did little good for investors who didn’t sell precisely at the top.

He says the price may go as high as that again, but it won’t stay there for long.

What Christian and his team are predicting is that the average annual price will beat records. That’s a far more useful measure for people who invest in the metal. Investors in precious metals typically want to preserve the value of their wealth over long periods. Price spikes that last as little a a minute sometimes, offer no such financial protection do little for investors. (Such events do produce great headlines though.)

What Christian is saying is that silver prices will exceed the previous average annual high of $35.22 reached in 2011.

Or put another way, if Christian is correct, silver prices could easily add 40% or more sometime in the next few years. Even if it takes until four years 2026 that would still provide a healthy annual return of 9-10%. That’s far better than the disaster investors saw in stocks and bonds last year.

Investors wanting to take a long-term bet on silver prices rising might consider choosing the iShares Silver Trust (
SLV
) exchange traded fund, which tracks the price of silver bullion.