Silver has dropped back again this year. But strategists at Commerzbank expect increasing Gold prices to lift Silver too.

Supply deficit likely to shrink on Silver market

“Global demand is likely to decrease as compared with its record high last year. Growing supply is anticipated at the same time: mining production is expected to reach its highest level since 2016 and the supply of scrap Silver to post the highest level in a decade.”

“As these two effects combined will probably mean that the supply deficit this year will not be even half as high as it was last year, the Silver Institute sees little potential for pronounced price rises this year. With its cautious prediction of an average price of $23 this year, it is more sceptical than we are.” 

“We expect rising Gold prices in the second half of the year to pull up the Silver price too.”