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Silver Price: Market Forecasts for 2018

Whether you own silver already, or are looking to buy some in the future, you’re going to want to have a good idea what it will be worth over the next year. There’s no definitive way of predicting anything, least of all economics, but there are broad trends that are influencing expert predictions for the silver price in 2018.

Here’s a quick look at what the price of silver has been in 2017 and some predictions for what could change in the coming year.

2017 silver price

Silver prices began the year at £12.97 per troy ounce of fine silver, on the first day of trading, the 3rd January. Having fluctuated across the year, the price has dropped slightly from its original value – charting £12.76 at the end of October. The highest price recorded in 2017 at the time of writing (November 2017) was £14.93 per troy ounce, on March 2nd, and the lowest was £11.82, on July 10th. The most dramatic change in silver prices came between April 13th and March the 5th, when the price of silver fell from £14.80 to £12.58, a reduction in value of 15 per cent.

2018 silver price predictions

Seeking Alpha  - Hubert Moolman

Writing for Seeking Alpha, precious metals analyst Hubert Moolman, has predicted that the silver market will show bullish tendencies going into 2018, and indeed the years beyond. He speculates that silver is among the most undervalued metals in the contemporary commodity market, and gives the following reasons to explain why he thinks prices are likely to rise:

  • All time low interest rates, which are about to rise.
  • Overvalued stock markets.
  • A fragile monetary system that is debt-laden to the full.

The commentary draws particular attention to the interest rates, saying that on previous occasions when rates have reached low points and subsequently risen, the price of silver has tended to follow suit. Worth keeping in mind if you’re in the market for silver bars.

The Economy Forecast Agency

The Economy Forecast Agency provide long-term forecasts for financial and commodity markets. They have predicted the price of silver from the end of 2017 through to 2021, providing a detailed, month-by-month breakdown of how the silver price is likely to fluctuate and develop over the coming year.

After finishing 2017 at £12.90 per troy ounce, they predict the price will jump to £13.35 at the start of 2018, before dropping to £12.52 in February 2018. They predict the price will then return to £13.27 in March of 2018, and continue to fluctuate around similar figures until falling to £12.32 in July and £12.12 in August. It will jump again, reaching a high of £13.49 in October and finish the year in December at a low of £12.18.

If the agency’s predictions play out, silver will lose 5.58 per cent of its value in 2018, though it will see fluctuations throughout the year. The Economic Forecast Agency gives their 2018 silver price predictions in dollars. The Sterling value given by us here is based on the current exchange rate at the time of writing between the dollar and Sterling, which is of course subject to change over the next year.

Peter Krauth – Money Morning

Peter Krauth is a financial investment specialist who writes for Money Morning. In his 2018 silver price forecast, he predicts that the metal will make gains of 29.4 per cent ahead of 2018. He gives a few reasons for this bullish forecast, principally that silver has performed better than expected over the last few months of 2017, despite a number of factors that would otherwise create a bearish market.

One of the factors is a recent rise in the dollar price. Rises in the value of the dollar against other major world currencies have historically caused silver prices to fall. In Krauth’s example, this is not the case. 

John Whitefoot, Lombardi Letter

John Whitefoot also predicts significant bullish tendencies for the silver market ahead of 2018. To justify his prediction, Whitefoot gives five main reasons that indicate that the silver price might be about to rise:

  • US economy remains fragile.
  • Additional Federal Reserve interest rate hikes to send silver prices higher.
  • US stocks are significantly overvalued.
  • Global economic conditions deteriorating.
  • Possibility of rises due to sudden, unforeseen events.

Will the gold price affect the silver price?

Silver, like the price of gold, is influenced by global political and economic developments. When markets and governments are uncertain, the silver price has historically tended to increase. In particular, when economies perform badly, and inflation is high, silver also performs well. After the 2008 global financial crash for instance, and in the wake of the 2016 Brexit referendum, both the silver and the gold price rose sharply and significantly.

Silver prices are also governed by the laws of supply and demand, and by association, by the changing fortunes of the industries that make most use of this precious metal. Of these, film, photography and electronics are particularly significant. Much of silver is mined as a by-product of copper, meaning that its supply is also reliant on industries that use copper, such as the property market.

Could this be a good time to buy silver?

Many of these forecasts predict bullish tendencies for silver moving into 2018 and beyond. Global and political tensions, as well as economic uncertainty in major economies are all contributing to many predictions that silver will continue to rise and outperform expectations.

Grow your silver investments in 2018 with physical silver bullion. View our silver bars and silver coins.