Silver Outlook 2015: Price May Improve By Year End
Full-year silver price estimates for 2015 are looking fairly conservative, but the consensus seems to be that a weak start to the year may lead to a stronger finish. Read on to find out more about what's in store for the white metal moving forward.
At the end of 2013, silver was sitting at about $20 per ounce and had earned the dubious distinction of being the year's worst-performing metal. Market participants were still reeling from the metal's dramatic April price drop, and analysts were predicting that it would average about $21 in 2014. It's now one year later, and silver still hasn't recovered — according to a Kitco chart, the white metal averaged just $19.09 in 2014. That said, the year didn't begin too badly. As the chart below shows, the white metal started 2014 at around $20, and even neared $22 during the first quarter and again in the third. In fact, it was only in September that it began to really spiral downward.
Silver price: December 31, 2013 to December 30, 2014.
Commenting on silver's price activity this past year, Andrew Chanin, co-founder of the PureFunds ISE Junior Silver ETF (ARCA: SILJ), said it surprised him as he "thought we would see the gains from earlier in the year hold," with "over $30 silver" ultimately being the result. "Given the continued strong demand (investment, coin/bar, industrial) and relatively flat supply, I am surprised that laws of supply and demand did not propel silver prices to a higher plateau," he explained. In terms of what hurt silver's prospects, by most accounts a strong US dollar was largely to blame. That said, the end of quantitative easing and fear of higher US interest rates also played a role. Thus far the white metal has not been able to pull off a substantial recovery.