Silver Surging: Experts Forecast $30/oz Price Target
📊 Analysts at Citigroup predict that silver could climb to $30 per ounce in 2023. This surge is anticipated due to declining interest rates and a significant increase in silver demand from China. Currently, silver is trading at a little over $24 per ounce. If it reaches $30 per ounce, it would mark around a 25% increase for this popular precious metal.
🏦 Large banks in the United States are facing a new crisis as they experience the fastest decline in deposits in four decades. According to data from the Federal Reserve, deposits at the 25 largest commercial banks have plummeted by $921 billion since April 2022, representing a decline of 7.88%.
💰 U.S. Chapter 11 bankruptcy filings have surged by 68% in the first half of 2023 compared to the previous year, as reported by Epiq Bankruptcy. This surge is attributed to historically high interest rates and persistent inflation, signaling the end of the era of easy money.
🏛️ The U.S. yield curve has hit its deepest inversion since 1981, a phenomenon often associated with an approaching recession. The gap between the yields of 2- and 10-year Treasuries has sparked fears of an economic decline, raising concerns among investors.
📉 Morgan Stanley predicts a potential stock market sell-off of 20% or more in the coming months. Here are five reasons why investors should prepare for a downturn:
- Attractively priced downside protection
- Elevated drawdown risk due to a narrow market rally
- High valuations in absolute and relative terms
- Equities already pricing in an optimistic outlook
- Positioning no longer providing a headwind to equities.
Keep Your Focus on this Number: $2,500
This figure represents the recent increase in the U.S. national debt per person within the last month. Since June 3rd, the national debt has surged by $850 billion, equivalent to $2,500 for every U.S. citizen. The Treasury Department reports that the total national debt has now reached over a staggering $32 trillion.
Federal Debt: Total Public Debt
With the debt increasing by nearly $1 trillion since the suspension of the debt ceiling a month ago, investors are beginning to question the sustainability of such high debt levels. Some wonder whether these unprecedented levels could trigger a gold rush.
U.S. Debt’s Impact on Gold Prices (1970–2023)
Fortunately, Visual Capitalist has created an informative infographic shedding light on the relationship between the price of gold and the U.S. national debt. It reveals a clear long-term trend, suggesting that as the U.S. debt expands, gold remains an attractive option for investors seeking financial security.
Demand Surge Triggers a Silver Squeeze
Recent advancements in solar panel technology are driving up demand for silver. The latest wave of solar tech utilizes significantly more silver compared to previous iterations, making it a crucial component. This growing demand within an already thriving market could trigger a surge in silver’s popularity.
While solar industries currently account for a modest portion of overall silver demand, their share is steadily increasing. Forecasts from the Silver Institute indicate that this year, silver consumption by solar industries will rise to 14%, a substantial leap from the mere 5% in 2014.
Experts are warning of an impending silver shortage, considering the decline in mining operations and the emerging need for silver across various industries. Consequently, higher silver prices may be the only solution to address the supply and demand crunch.
For those considering adding to their silver position, now may be the opportunity of a lifetime time to do so.
That wraps up this week’s edition of the Bullion Bulletin. Stay tuned for more updates next week!
Please note: The following post is intended solely for informational and thought-provoking purposes. It does not claim to accurately predict or forecast real-world outcomes. This editorial expresses an opinion and should not be taken as investment advice or a recommendation regarding specific securities, commodities, or actions. The author cannot be held responsible for these opinions.
