Silver price haven't changed much over the past six months, giving investors the chance to purchase the metal at rising global demand levels that are anticipated to reach a record this year.

According to Edmund Moy, former director of the United States Mint and senior IRA strategist for gold and silver dealer U.S. Money Reserve, "a convincing case can be made that 2022 will be a favorable year for silver." Expect to see an increase in silver demand from the industrial sector when the world economy bounces back from the epidemic.

According to the Silver Institute, this year's total worldwide demand for silver is anticipated to increase by 8% to a record-high 1.112 billion ounces.
The Silver Institute stated that the "exceptionally promising" outlook for silver demand is driven by record silver industrial fabrication, which includes electrical and electronic applications as well as green technologies. This statement is based in part on analysis from precious-metals research consultancy Metals Focus.

The Silver Institute predicts that this year's increase in demand for industrial silver will be 5%, reaching a new high of 552 million ounces.

According to Robert Minter, director of ETF investment strategy at asset management abrdn, industrial demand makes up 50% of all silver demand and should drive roughly 50% of price changes. According to him, the other half of demand is driven by jewelry and investment uses, which share similarities with gold.

Silver can be compared to gold and copper in terms of demand, according to Minter. However, when we compared returns since the end of 2020, copper has increased by 28%, gold has decreased by 2%, and silver has decreased by 12%. He claims it suggests silver prices ought to be significantly higher.

According to Minter, a silver price of around $25.50 per ounce would be necessary for silver to even merely match the performance of copper. Silver futures were settled at $23.605 on February 16.

Silver and gold both experienced price declines last year as inflation started to emerge but was "explained away as transitory," according to Michael Cuggino, president and portfolio manager of the Permanent Portfolio Family of Funds, who believes that 2021 served as a "basing and consolidating year" and offers a "good entry point for a long-term investor" in either metal.

Still, since August, the trading range for silver futures has consistently remained less than $5 per ounce.

Geopolitical and monetary uncertainties, problems with inflation, and an increase in silver demand are likely catalysts for a breakout move this year, according to Cuggino.

A "strong long-term demand picture for industrial use" is anticipated, with demand coming from both traditional and cyclical enterprises as well as from developing green industries, he says.

According to Michael DiRienzo, executive director of the Silver Institute, the demand for physical silver investment will also increase by 10% to 290 million ounces in 2022.

Silver coins is already being bought by investors. According to Moy, the U.S. Mint sold 28.3 million American Eagle silver one-ounce coins last year, up from 14.9 million in 2019, which was a prepandemic level.

Silver mining stocks and trade exchanged reserves likewise have their place in a "smart financial backer's tool stash, however claiming the actual metal gives the financial backer an unmistakable resource without figuring in administration," he says.

Assuming expansion stays "high and determined, anticipate that more financial backers should fence their portfolios with some silver," Moy says, and those hoping to mining stocks, ETFs, or claiming the actual metal should conclude what works best in their portfolio.
"Stocks and ETFs are advantageous, yet their presentation is reliant upon something beyond spot costs," and with regards to responsibility for actual metal, stockpiling and movability are key worries, he says. It is very easy to sell bullion under cash for gold option.