Is silver a good investment in 2023?

The Spotlight

10 minutes read

Jul 20, 2023

PAMP silver bar on a blue background with the date 2023

Unlock the potential of silver!🚀 As the demand for physical silver surged during the health crisis, what can you expect from the white metal for the rest of 2023?

With the ongoing economic and geopolitical instability, you might wonder if it's a good time to invest in silver in 2023.

In this article, we’ll answer your most pressing questions on silver. By the end of this article, you can expect to have a clearer view of the following:

  • What is the price prediction for 2023?
  • Is silver a good investment in 2023?
  • What are the pros and cons of investing in silver?
  • What is the best time to buy silver for investment?
  • How to buy silver for investment purposes?

Let’s dive in!

Silver price prediction for 2023

In 2020, the price of silver rose to above $20 per ounce for the first time in four years. Since then, the precious metal's price has mostly stayed above that level. It even went above the $25 mark in May this year.

Silver prices for the last 6 months
Silver prices for the last 6 months

Nicky Shiels, the Head of Metals Strategy at MKS PAMP GROUP, predicts that the demand for silver will be higher than its supply. Here is a brief overview of her predictions:

  • Despite the growing risks of a recession, industries and the general public are buying silver. So this is why the price of silver is expected to be supported and not fall below $22 per ounce for the rest of the year.
  • Industrial demand for silver is projected to reach new heights. But there are also supply risks due to this year’s social unrest and industrial action in Latin America and Mexico. These factors may lead to a deficit of more than 150 million ounces.
  • Compared to gold, there is relatively less silver available in known exchanges and LBMA (London Bullion Market Association) vaults. In simpler terms, less silver is readily available for trading or use than gold.

In their 2023 report, the Silver Insitute also stated that silver demand increased by 18% last year, reaching a record high of 1.24 billion ounces. This meant there were huge supply deficits. For the upcoming years, they’re also expecting silver shortages supporting Nicky Shiels’ silver predictions.

Finally, the German-based company Heraeus also predicts that silver demand will likely increase later in the year. That's because the production of polysilicon might increase, which is part of harvesting solar energy. This, in turn, means the metal’s price might rise.

💡Silver acts as a conductor in solar panels and transfers elecitrcity efficiently. As the global demand for solar energy rises, the demand for silver in this industry also grows.

It’s predicted that this trend will continue in the future, primarily due to developments in technology and the increasing focus on renewable sources of energy. This could potentially affect the market price of silver.

So with that in mind, it may be a good time to consider adding silver to your precious metals savings.

What are the pros and cons of investing in silver?

two people pushing "reject" and "accept" signs

As with anything, there are pros and cons to consider when buying silver. Here are some benefits and drawbacks to consider when you place silver in your precious metals savings.

Pros of investing in silver

Some potential reasons to consider silver as an investment include:

1. Silver can offer you a sense of security when things get uncertain in politics and the economy. 🌍

Investors often turn to precious metals like silver to protect their wealth during unpredictable times. When traditional currencies face challenges, assets like gold and silver take the spotlight as a reliable store of value. However, you should keep in mind that silver is much more volatile compared to gold. So, silver can be a suitable option for investors ready to bet on precious prices and ready to ride the silver price wave.

💡Read our SPOTLIGHT to learn more about silver volatility.

2. What's great about silver is that it holds real, tangible value. Unlike paper money that can be easily printed, silver bullion is a physical asset with a finite supply. 🛡

Even though its price can be influenced by market fluctuations like any other commodity, physical silver inherently carries genuine value that you can hold in your hands.

3. Another advantage of silver is its affordability compared to gold. 💵

When you follow the silver price and compare it to gold, silver is generally less expensive. This means it’s more accessible for beginner investors with smaller budgets.

4. Let's not forget about the historical significance of silver. 📜

a hand in white glove holding an old silver coin

For centuries, silver and gold have been seen as valuable forms of currency. This rich history gives silver a sense of stability and enduring value. When you invest in physical silver, whether it's in the form of bars, coins, or other means, you can have the reassurance that its value has stood the test of time.

Cons of investing in silver

Now onto the downsides of investing in silver! 🙅‍♂️

1. One concern is the lack of liquidity (compared to traditional money).

Unlike traditional money, you can't just whip out a silver bar to pay for groceries. Silver usually needs to be converted into currency before you can use it for your everyday expenses. This can be a hassle if you need to sell it quickly, as it may take some time to find a buyer. That’s where the option to sell your stored metals with 24/7 access comes in. At GOLD AVENUE, you can sell your products at any time with zero commissions, so if you need some cash, you can just sell your silver instantly.

2. Another thing to consider is the risk of theft.

a bank building with a construction machine carrying silver bars

When you hold physical silver bullion, you need to take precautions to keep it safe from potential thieves. This might mean storing it in a secure location like a safety deposit box at a bank or a safe box at home. But it's important to keep in mind that these security measures can come with additional costs. 💰That's why at GOLD AVENUE, we store your shiny metals in our secure vault that is independent of the banking system.

Remember, investing always comes with its pros and cons. That’s why it's important to consider every factor carefully before making any decisions.💡

Best time to buy silver for investment

Now that we've covered the pros and cons of investing in silver, you might wonder - "Is silver a good investment in 2023?"

While it's impossible to predict the future, we can use a variety of scenarios as a basis to form our own judgment to decide whether to invest in silver in 2023.

The different scenarios include:

  • If the supply of silver falls behind the demand, then the price of silver will likely rise. So, if you notice a supply-demand imbalance, it could be a good time to consider buying silver. 📈
  • As covered earlier, there is a rising demand for silver in various industries, such as solar energy. This increasing demand might suggest that silver prices go up, meaning it could be a good time to consider investing in silver. 🏭
  • Now, let's talk about hedging against inflation. When there's a concern about rising prices eroding the value of cash, some investors turn to commodities like silver. It can act as a hedge, helping to protect your portfolio from the negative effects of inflation. 💸
  • Adding silver to your investment portfolio can be a smart move if you want to diversify your holdings and reduce risk. Including commodities like silver as part of your overall portfolio allocation can provide a valuable layer of diversification, which may help cushion the impact of market fluctuations. And with Nicky Shiels predicting the price of silver rising, it may be a good idea to consider investing in silver.

How to buy silver for investment purposes

PAMP fine silver bars on a blue background with GOLD AVENUE logo

After learning about different experts' silver outlooks, the pros and cons of the precious metal, along with other factors, you might wonder how you can invest in silver.

Don't worry; our beginner's guide runs through how to invest in silver. It goes into more detail about silver, its different uses, factors that might influence silver prices, and silver products available to buy.

You can also use our website to buy and sell silver at any time that suits you.

You can choose to store it in one of our secure vaults outside the banking system, or we can deliver it to you. If you choose to keep your precious metals at home, be sure to insure your precious metals so it's covered for any loss or damage. Our safe vaults are fully insured against theft, loss, and damages, so you can store your metals stress-free.😌

Key Takeaways

  • Silver Price Prediction for 2023: experts suggest that the demand for silver may outstrip its supply, leading to potential price support of at least $22 per ounce for the rest of the year. Industrial demand and developments in renewable energy technology could further contribute to the rise in silver prices.
  • Pros of Investing in Silver: silver holds tangible value as a physical asset with a limited supply and is more affordable compared to gold.
  • Best Time to Buy Silver for Investment: A supply-demand imbalance and increasing demand in industries like solar energy are some factors to consider when deciding whether to invest in silver in 2023.

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