Silver was the weakest performer in precious metals in 2018, and analysts are predicting a rally in 2019, with Silver reaching $18 in 2019 and $20 in 2020, according to ABN AMRO’s Georgette Boele, the bank’s senior precious metals analyst. “Silver prices have been beaten up more than we had foreseen,” said Boele. Downward drivers for silver in 2018 included a stronger dollar, higher U.S. Treasury yields, tighter Fed monetary policy, uncertainty with China’s economy, and lower jewelry demand, according to Boele. “Silver is cheap and it is likely that prices will rally in our forecast horizon. So we are bullish on silver prices and our forecasts reflect that,” said Boele. David Morgan agrees, stating that the gold-silver ratio is very favorable for silver. Morgan believes that silver will outperform in the long term after the big money has entered the gold sector.

Boele predicts silver prices rising to $16 an ounce as early as March and to $18 in December, followed by another rally in 2020, with prices rising to $20. The increase will be driven by a weaker dollar and lower Treasury yields, Boele noted. “Silver prices tend to rally when the U.S. dollar and U.S. Treasury yields are lower.” Moreover, a stronger Chinese yuan and Indian rupee will help boost demand for jewelry. And with investors’ increasing optimism for silver prices, extreme speculative short positions in silver will reverse. “It is likely that this will result in a substantial rally in silver prices (above the 200-day moving average). So the upside in prices is far greater than the downside in our view,” Boele said.

Patriot Gold Group is a gold IRA specialist. The firm was the fastest growing gold IRA dealer in America and rated the top IRA Gold Dealer in 2016 by Consumer Affairs. Find out more about the outlook for silver and other precious metals; visit our website (www.patriotgoldgroup.com) or call Patriot Gold Group at 800-974-4653.