This blog is a summary of our original post on Linkedin, mid December. See Linked in post

The underlying price of gold, diamonds and lab grown diamonds have featured in my previous posts. But not until now has the price of silver been a topic of particular relevance.

Barring a sharp spike in early 2011 to $50 a troy ounce and a COVID related bounce to $30 in 2020, silver has long been trading within a reasonably well contained range of $15 to $25, unadjusted for inflation.

While the material appreciation in the price of gold, from a much higher starting point, has been felt sharply by retail jewellers and customers alike, a rise of even 20% to 30% in the silver price has been of little concern.

This looks like it may well be about to change.

Filtering out short term over exuberance and price expectations plucked out of thin air, there are nevertheless several compelling factors conspiring to propel the price of physical silver significantly higher - and relatively quickly.

The primary pressures are predicated upon basic economic theory; growing concerns, some founded, over sufficient supply against a backdrop of increasing demand.

There are a plethora of well researched and credible articles across the internet that deep dive into the various developments impacting both sides of this equation (and are well worth digesting).

But in essence, the takeaway is that the actual stock of refined silver plus reserve semi-refined silver is in no way sufficient to meet burgeoning demand for industrial and technology requirements, jewellery consumption and investor appetite for the years, and quite possibly the months, ahead. 

Still, the prospect of silver spiking higher in price over a one to two year horizon is real. In fact, certain highly regarded precious metal participants anticipate a price tag in excess of $200 per ounce before 2026 is out.

Some others consider unfolding events representing an even more dramatic structural market change, which could see prices nearer $500. Or higher. We shall see.

But if that is where we are headed, expect to see retail prices of fine silver jewellery shifting quite a bit higher, sooner rather than later.