JPMorgan, one of the largest investment banks, has predicted that silver prices will skyrocket by 2025, led by various factors, including increased demand due to expected currency and price changes value of silver as a hedge against inflation. Price volatility, expected to reach $36 an ounce, will also be supported by supply constraints.

JPMorgan expects silver prices to reach $36 an ounce by 2025

Some analysts point out that the precious metals commodity market will skyrocket in the coming years. According to JPMorgan, silver will trend up to $36 an ounce by 2025, led by various factors supported by upcoming currency decisions that will shift investor interest towards the this product.

One of these factors is the expectation of interest rate cuts and monetary easing by the Federal Reserve, which is associated with a weakening of the dollar and a strengthening of all valued and traded assets. in this currency. A more structural factor involves the increase in silver demand stemming from the metal's applications for the technology industry, including solar panels, automotive products and other products that will continue to grow. continue to require silver as the primary material for their operations.

But perhaps the more important catalyst exacerbating this price increase is the supply constraints caused by the deficit and the difficulties the silver industry faces on the mining side. Other experts have warned that while demand has increased steadily in recent years, supply has stagnated and prices have remained in the same range, creating a deficit in the market that is being filled with goods. above-ground secondary inventories, including futures markets and exchange-traded funds (EFT).

Silver market analyst Peter Krauth estimates these inventories will end in 12-24 months, putting silver prices in a strong position to surge. This timeline intersects with what JPMorgan predicts for the silver market.

It is estimated that this silver deficit will reach 240 million ounces, while the industry can only produce 850 million ounces per year.

What do you think about JPMorgan's prediction on silver prices? Let us know in the comments section below.

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