The demand for physical silver is increasing in parallel with investor interest. The conditions are therefore right for the silver price to continue to rise. Yet from an investment perspective, physical silver has often been overshadowed by the purchase of physical gold.

However, over the past year, the silver price has moved by more than 10% due to increased investor interest and strong industrial demand.

So what about the silver price forecast ? Can the white metal create new opportunities for investors? 

Why choose silver as an investment ? 

Currently, central banks continue to artificially maintain financial markets. This has the notable effect of keeping the price of precious metals, particularly gold and silver, at particularly low levels when economic conditions should have encouraged the opposite trend.

Interest rates are beginning to rise and the euphoria in the markets is likely to subside as economic realities catch up with American and European ambitions. As a result, a rise in the gold price should be felt, albeit limited.

Moreover, this precious metal, following in the footsteps of its illustrious predecessor, should experience the same mechanical effect. A rising trend that could continue, regardless of the hypothetical fluctuations of the yellow metal. 

However, this time the amplification could go beyond the usual outperformance, and even beyond the bullish run of gold.

Some even imagine a sudden evolution, independent of the fluctuations of the gold price. 

Increased demand for silver metal

Over the past ten years, investors have bought three times as much silver bullion or coin as in the previous ten years. They also bought more gold, but to a much lesser extent.

Similarly, demand for silver is one of the main drivers affecting the price of silver, so it is an important consideration for investors when considering buying it. Due to a much wider range of uses, in percentage terms, the price of silver can vary considerably, as the price of gold has historically moved much more slowly. 

Nevertheless, it is still used by many as an investment option and can form an important part of your portfolio. 

Some even state that silver is used by slightly less risk averse investors. As such, diversifying your portfolio with silver can also offer the potential benefits of the larger price movements that accompany the silver market. 

In the same way that people invest in gold to grow their stock and bond portfolios, silver is also used by investors to diversify because, like other precious metals, it can provide a low negative correlation with other assets. For this reason, adding physical silver to your investment portfolio can reduce overall risk.

Therefore, predictions, and without much confusion, point to a more than likely boom in silver prices.

As a result, it is apparent that the price of silver is about to skyrocket and there is a strong belief that silver metal should be given a more prominent place in the financial and monetary market.