Will silver outperform gold in 2024 and which is the best platform to trade them?
Silver Analysis and Silver Price Predictions for 2024 and 2025 Compared to Gold
Silver prices have approached the psychological barrier of $30 per ounce for the first time since 2021, recording a three-year high of $29.80 on Friday, April 12 amid high demand for precious metals as a safe haven due to escalating tensions between Iran and Israel.
Silver prices have achieved remarkable gains during the last quarter of last year and the first quarter of this year, with a fiery start in the second quarter rising more than 15% so far within just the first two weeks of this quarter.
Undoubtedly, this amazing performance of silver at the start of the second quarter of this year heralds more extensive rises during the remainder of this year, amid expectations of reaching the $35 per ounce barrier before the end of 2024.
Best Silver and Gold Trading Companies 2024
Technical Forecasts for Silver Prices
By studying the daily chart for the price of silver, we observe that the price is moving in a clear upward direction since the end of the first quarter of 2020, recording the highest trading peak around $30.06, with the price now approaching this peak again and showing signs of aiming to achieve new record levels during the coming period.
The recent breakthrough of the $26.00 barrier has significantly opened the way for continued rise in the short and medium term, and we anticipate surpassing the $30.00 barrier to target the $35.00 area as the next major positive milestone.
Positive Technical Models Supporting the Upward Trend
- On the long-term time frames, specifically the weekly chart, we find that the price is close to completing the formation of an inverted cup and handle pattern with its confirmation level at the pivotal barrier of $30.00, and thus, breaking through it would push the price to achieve long-term gains extending to areas of $40.00 and then far to the $48.00 barrier.
- On the other hand, we notice that the price has recently been moving within an ascending triangular flag shown in the following chart, which we believe will provide a positive incentive that will support the chances of surpassing the $30.00 barrier and then activating the strong upward wave to achieve the proposed targets above.
Temporary Bearish Correction, Anticipated Rise
The recent upward wave that started from the $21.92 areas has temporarily stopped at the $29.80 level, undergoing some bearish correction to find good support at the Fibonacci retracement level of 23.6% at $27.90, and begins to present positive trades and an attempt to build a new upward wave in the short term, enhancing the chances of continuing the main upward trend.
Positive Support from Technical Indicators
The technical indicators themselves provide positive support for the price, noting that the Stochastic indicator is moving near the oversold areas to provide a positive incentive expected to contribute to pushing the price to overcome nearby resistance barriers and then activate the positive model scenarios proposed, along with the 50-day moving average continuing to support the price from below.
Conclusion
Based on the above, and taking into account the mentioned technical factors, we expect the price of silver to continue rising in the short and medium term, with near targets starting at $35.00, extending to areas of $40.00 and then $48.00 influenced by the positive long-term model.
Turning Points of the Trend
Attention should be paid to the fact that breaking the $27.90 level would put the price under additional bearish corrective pressure, possibly forcing a test of the areas of $26.80 then $24.90 in the short term before attempting to rise again, while continued negative pressure and breaking the $22.20 barrier would stop the main upward wave and cause a fundamental shift in the trend towards decline, starting its targets at areas of $17.55 extending to $14.60.
Fundamental Analysis of Silver
In the latest reports from the Silver Institute headquartered in Washington D.C. in the United States, it was emphasized that the year 2024 could be a fantastic year for silver, with prices likely reaching the highest levels in ten years.
The Silver Institute stated that demand for the industrial "white" metal is expected to reach 1.2 billion ounces in 2024, which would represent the second highest level of global demand ever.
- Silver price predictions this week: Everyone now expects the continued rise in silver prices with the trading goal above the important barrier at $30 per ounce.
- Silver price predictions in April: The rise in silver prices is likely to continue throughout April transactions thanks to active demand from retail traders and improved actual demand for the industrial metal.
- Silver price predictions for 2024: With surpassing the $30 per ounce barrier, the next goal for the white metal is the $35 barrier expected to be reached before the end of the year.
- Silver price predictions for 2025: The next year, 2025, might be the year when silver prices record new historical levels above $49.76 per ounce, as most global central banks are likely to make numerous cuts in interest rates, which favors non-yield assets.
In the context of the research conducted by retail traders for financial assets to hedge against the risks associated with the expected shift of global central bank policies to more flexible monetary policies, it appears that silver is the optimal and most cost-effective choice at this time.
The current rise in silver prices comes as retail traders realize that the white metal is far from its true value compared with gold, which is trading near its all-time highs.
Gold recorded a new record high on Friday, April 12, at $2,431.55 per ounce, while silver is still far from reaching and recording new historical levels above $49.78 per ounce, the historical level recorded in April 2011.
Whereas the movements of silver historically tend to be more than those of gold when silver prices rise or fall, this has not occurred recently. However, with more retail investors paying attention to this matter, demand levels will accelerate, and prices will continue to climb to higher levels.
The Silver Institute, based in Washington D.C. and a non-profit international organization comprising various members in the silver industry, stated that stronger industrial activity is a major driver for the increased global demand for the white metal.
The institute also explained that industrial activity in most parts of the world is expected to register a new annual high this year.
It is worth mentioning that silver is primarily used for industrial purposes and is typically incorporated in the manufacturing of automobiles, solar panels, jewelry, and electronics.
Michael DiRienzo, the executive director of the Silver Institute, told CNBC: We believe that silver will have a great year in 2024, especially in terms of actual demand for the industrial metal.
DiRienzo added: We expect silver prices to reach $30 per ounce, the highest level in ten years, and the last time the white metal's prices touched the $30 barrier was in February 2013.
The Silver Institute expects a 9% increase in global demand for silver items and a 6% increase in demand for jewelry this year, with India expected to lead the surge in jewelry purchases, alongside continued high demand in the United States.
The report also mentioned that the expected recovery in the consumer electronics sector would boost actual demand for the white metal, giving the silver market an additional boost.
The Silver Institute pointed to some obstacles that could curb the rise in precious metal prices in the short term, including the economic slowdown in China, the world's largest consumer of metals.
Concurrent with the receding chances of early cuts in U.S. interest rates, which represents headwinds for institutional investment in silver.
However, things may turn around in the second half of the year, as most market watchers believe that the Federal Reserve will begin to ease monetary policy and lower interest rates during that period.
Like gold and other precious metals, silver prices tend to have an inverse relationship with interest rates, as higher interest rate environments harm the demand for these metals.
Precious metals are considered non-yielding assets, which makes them less attractive compared to alternative investments such as bonds.
It is known that silver bears the nickname "the poor man's gold" but both share a positive relationship when it comes to prices, albeit with a time difference.
Given silver's actual uses in many industries compared to gold, the performance of the white metal is closely linked to the health of the global economy and the cycle of industrial activity.
Conversely, gold prices usually rise during times of economic weakness or uncertainty, as the metal is considered higher in valuation as a safe haven compared to silver.
Based on this, silver is more sensitive to economic changes and more volatile than gold, and tends to outperform the yellow metal during strong economic expansion periods, and performs less well when there are economic pressures and slowdowns in the business cycle and activities.
The gold to silver ratio, which tracks the number of silver ounces needed to buy one ounce of gold, currently requires 83 ounces of silver to buy one ounce of gold.
Best Silver and Gold Trading Platforms
- Plus500, a trusted and licensed trading company in silver and gold.
Plus500 offers an advanced trading environment for trading silver and gold, making it a preferred choice for traders looking for diversity in trading products and high security. It provides access to silver trading through contracts for difference, allowing traders to benefit from price movements in silver both upward and downward without the need to own the actual metal.
- XM, a reliable trading platform and broker suitable for beginners in trading silver and gold.
XM stands out in the field of silver and gold trading due to its provision of comprehensive educational materials and webinars focused on silver trading strategies. XM offers diverse trading opportunities for silver through contracts for difference, enabling traders to efficiently exploit opportunities in the silver market. With strong technical support and easy-to-use trading platforms, XM is an excellent choice for those looking to enter the world of silver trading.
Plus500
Contracts for difference for commodities are available for trading at Plus500 with a leverage of up to 1:150. You can start trading with as little as $100 to achieve a capital effect of $15,000!
| Licenses | FCA, CySEC, ASIC |
| Minimum Deposit | $100 |
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| Asset Coverage | Forex, CFDs, Stocks, Commodities, Cryptocurrencies, Indices |
| Customer Support | 24/7 |
| Account Types | Standard, Professional |
Cons
- The platform requires some training before use
Pros
- Leverage up to 1:150
- Customer support in Arabic
- Licensed in Dubai
XM Company
XM is one of the leading companies in the field of trading silver, gold, and precious metals, with a strong commitment to providing a transparent and secure trading environment. XM offers its clients access to a wide range of educational resources and trading tools to support traders at all levels, including beginners and experts, making it an excellent choice for those looking to explore opportunities in silver trading.
| Licenses | CySEC, ASIC, IFSC |
| Minimum Deposit | $5 |
| Trading Platforms | MT4, MT5, WebTrader |
| Asset Coverage | Forex, CFDs, Stocks, Commodities, Cryptocurrencies, Indices |
| Customer Support | 24/7 |
| Account Types | Multiple, including Islamic Accounts |
Cons
- Some accounts have high fees
Pros
- Educational materials for traders
- Easy deposit and withdrawal
- Customer support
- Immediate exposure to global economies
In the context of the research conducted by retail traders for financial assets to hedge against the risks associated with the expected shift of global central bank policies to more flexible monetary policies, it appears that silver is the optimal and most cost-effective choice at this time.
The current rise in silver prices comes as retail traders realize that the white metal is far from its true value compared with gold, which is trading near its all-time highs.
Gold recorded a new record high on Friday, April 12, at $2,431.55 per ounce, while silver is still far from reaching and recording new historical levels above $49.78 per ounce, the historical level recorded in April 2011.
Whereas the movements of silver historically tend to be more than those of gold when silver prices rise or fall, this has not occurred recently. However, with more retail investors paying attention to this matter, demand levels will accelerate, and prices will continue to climb to higher levels.
The Silver Institute, based in Washington D.C. and a non-profit international organization comprising various members in the silver industry, stated that stronger industrial activity is a major driver for the increased global demand for the white metal.
The institute also explained that industrial activity in most parts of the world is expected to register a new annual high this year.
It is worth mentioning that silver is primarily used for industrial purposes and is typically incorporated in the manufacturing of automobiles, solar panels, jewelry, and electronics.
Michael DiRienzo, the executive director of the Silver Institute, told CNBC: We believe that silver will have a great year in 2024, especially in terms of actual demand for the industrial metal.
DiRienzo added: We expect silver prices to reach $30 per ounce, the highest level in ten years, and the last time the white metal's prices touched the $30 barrier was in February 2013.
The Silver Institute expects a 9% increase in global demand for silver items and a 6% increase in demand for jewelry this year, with India expected to lead the surge in jewelry purchases, alongside continued high demand in the United States.
The report also mentioned that the expected recovery in the consumer electronics sector would boost actual demand for the white metal, giving the silver market an additional boost.
The Silver Institute pointed to some obstacles that could curb the rise in precious metal prices in the short term, including the economic slowdown in China, the world's largest consumer of metals.
Concurrent with the receding chances of early cuts in U.S. interest rates, which represents headwinds for institutional investment in silver.
However, things may turn around in the second half of the year, as most market watchers believe that the Federal Reserve will begin to ease monetary policy and lower interest rates during that period.
Like gold and other precious metals, silver prices tend to have an inverse relationship with interest rates, as higher interest rate environments harm the demand for these metals.
Precious metals are considered non-yielding assets, which makes them less attractive compared to alternative investments such as bonds.
It is known that silver bears the nickname "the poor man's gold" but both share a positive relationship when it comes to prices, albeit with a time difference.
Given silver's actual uses in many industries compared to gold, the performance of the white metal is closely linked to the health of the global economy and the cycle of industrial activity.
Conversely, gold prices usually rise during times of economic weakness or uncertainty, as the metal is considered higher in valuation as a safe haven compared to silver.
Based on this, silver is more sensitive to economic changes and more volatile than gold, and tends to outperform the yellow metal during strong economic expansion periods, and performs less well when there are economic pressures and slowdowns in the business cycle and activities.
The gold to silver ratio, which tracks the number of silver ounces needed to buy one ounce of gold, currently requires 83 ounces of silver to buy one ounce of gold.
Citi Bank expects silver prices to rise to $30 per ounce this year, taking into account the expected slowdown in growth in the United States.
Goldman Sachs predicts silver prices to rise to $30 per ounce by the end of this year, thanks to a combination of factors including strong industrial demand and global interest rate cuts.
Deutsche Bank predicts that the silver price will reach $27 per ounce by the end of 2024, citing geopolitical risks and inflation as key factors supporting the prices.
Morgan Stanley predicts that the silver price will reach $25 per ounce by the end of 2024, while some analysts at the bank see the potential for it to reach $30 per ounce in the long term.
The types of demand for silver can be divided into two main categories:
- Industrial Demand:
- Electronics: Silver is widely used in electronic components such as printed circuits and motherboards in smartphones, computers, and other electronic devices due to its distinctive properties of efficient and high electrical conductivity.
- Renewable Energy: Silver is used in renewable technologies such as solar cells and lithium-ion batteries, which are essential in the transition to clean and sustainable energy.
- Medical Devices: Silver is used in medical instruments such as surgical catheters and diagnostic equipment due to its antibacterial properties.
- Vehicles: Silver is used in automobile engines to improve their performance and efficiency.
- Household Products: Silver is used in home appliances such as refrigerators and air conditioners to enhance their functions and efficiency.
- Investment Demand:
- Jewelry: Silver is a precious metal used in the manufacture of jewelry and art pieces for its beauty and distinctive properties.
- Coinage: Silver is used in the minting of coins due to its unique value and relative stability.
- Safe Haven: Silver is considered a safe haven for investors during periods of economic and geopolitical uncertainty due to its stable value and ability to retain purchasing power.
- Exchange-Traded Funds (ETFs): Silver is used in exchange-traded funds that allow investors to buy and sell silver without physically owning the metal.
Key factors affecting the levels of demand for silver:
- Global Economic Growth: Economic growth leads to increased demand for silver in various industrial and consumer areas.
- Global Interest Rates: Lower interest rates increase the attractiveness of silver as an alternative investment to low-yield government bonds.
- Economic and Geopolitical Uncertainty: Economic and geopolitical uncertainty increases the demand for silver as a safe haven for investors.
- Technological Developments: Technological advances in areas such as electronics and renewable energy lead to increased demand for silver.
Important price milestones for silver metal:
- October 2008: Silver recorded its lowest level at $8.42 per ounce.
- April 2011: Silver recorded its highest level ever at $49.76 per ounce.
- May 2020: Silver recorded its lowest level in 12 years at $11.64 per ounce.
- April 2024: Silver recorded its highest level in three years at $29.80 per ounce.
- In 2010: Silver achieved its largest annual gain ever with an increase of 83%, thanks to historic investment and industrial demand for the white metal.
- In 2013: Silver suffered its largest annual loss ever with a decline of more than 36%, due to concerns related to industrial demand and the weak global economy led by China, the world's largest consumer of metals.
Frequently Asked Questions about silver metal:
- Is the price of silver suitable for investment? Silver is currently trading around $28 per ounce. In light of most forecasts indicating an upward market for the precious metal in 2024, we believe that levels between $28 and $26 are suitable for investment with the target above $30 per ounce.
- How to invest in silver? Silver can be invested in several different ways, first by buying physical silver such as coins or bullion.
- Secondly, by investing in silver exchange-traded funds (ETFs), especially those traded in global markets like Wall Street.
- Thirdly, by purchasing shares of silver mining companies, especially those traded on American markets in Wall Street.
- Fourthly, by trading silver futures contracts, options contracts, and financial derivatives.
- Will silver prices reach $100 per ounce? In light of recent developments in global markets and economic and geopolitical risks, it is not entirely improbable that silver prices will rise to levels above $50 per ounce and then pave the way to $100 per ounce. To reach this historic level, we need factors that have a strong impact on the industrial and investment demand for the white metal.
- Is it expected that silver prices will rise in 2024? Yes, it is expected that silver prices will continue to rise this year, as most forecasts from major institutions and banks are stable around entering the metal into an upward market as it approaches breaking the $30 per ounce barrier.
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Dollar gives up five-month high on profit-taking
The dollar lost ground in European trade on Wednesday against a basket of major rivals away from five-month highs and on track for the first loss in six days on profit-taking.
The currency is also pressured as US 10-year treasury yields stalled ahead of further remarks by Fed officials on the future of US interest rates.
Recent aggressive remarks by Fed Chair Jerome Powell dragged the odds of Fed rate cuts in June and July sharply down.
The Index
The dollar index fell 0.2% to 106.14, with a session-high at 106.44.
The index closed up 0.15% on Tuesday, the fifth profit in a row, scaling a five-month high at 106.44.
The gains are bolstered by higher US treasury yields and strong US data.
US Yields
US 10-year treasury yields fell 0.75% on Wednesday away from a five-month highs at 4.696%, pressuring the greenback.
The bond markets await fresh clues about the future of US interest rates.
Powell
Fed Chair Jerome Powell said in a symposium earlier this week that inflation has stiffened and held in its place during the first quarter, raising concerns about the prospects of interest rate cuts in 2024.
Powell added that it’s clear that recent inflation data didn’t give the Fed enough confidence that inflation is heading towards the target, and it could take longer than expected.
San Francisco Fed President Mary Daly said there’s no urgent need to cut interest rates, warning from taking rash decisions.
US Rates
Following the remarks, the odds of a Fed interest rate cut in June tumbled to just 15%, while the odds of such a cut in July fell to 41%.
Now traders barely expect two Fed interest rate cuts this year instead of the previously estimated three.
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Sterling starts recovering after hot UK inflation data
Sterling rose in European trade on Wednesday for the first time in four days against the dollar, holding above the psychological level of $1.24 away from recent five-month lows.
The gains came after hot UK inflation data, which surpassed estimates in March, and underscored the inflationary pressures on the Bank of England.
The data hurt the odds of a UK interest rate cut in June ahead of BOE Governor Andrew Bailey’s speech later today, expected to include important clues on the future of UK monetary policies.
GBP/USD
The GBP/USD rose 0.2% today to $1.2447, with a session-low at $1.2417.
The pair closed down 0.15% on Tuesday, the third loss in a row, plumbing a five-month trough at $1.2405 following UK labor data.
UK Inflation
Earlier government data showed UK inflation rose 3.2% y/y in March, after rising 3.4% in February.
Core prices rose 4.2% y/y in March, above estimates of 4.1%.
UK Rates
The odds of a UK interest rate cut in June tumbled to 45%, with an 85% probability of such a cut in August.
Bailey
Bank of England Governor Andrew Bailey will speak later today in Washington on the state of the economy and monetary policy.
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Fed Chair: Driving down inflation towards target could take longer than expected
Fed Chair Jerome Powell said in a symposium earlier today that inflation has stiffened and held in its place during the first quarter, raising concerns about the prospects of interest rate cuts in 2024.
Powell added that it’s clear that recent inflation data didn’t give the Fed enough confidence that inflation is heading towards the target, and it could take longer than expected.
He said recent data shows strong economic growth and labor momentum, but little progress in bringing inflation towards 2%.
He asserted the Fed will hold onto its current policies until inflation sustainably approaches the targets.
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