In an interview with Kitco News, Ole Hansen - Head of Commodity Strategy at Saxo Bank - commented that silver prices have increased partly due to growing demand in the US, as metal banks flock to New York's treasury stores because they are concerned that silver could be taxed from the US.
Hansen said that concerns about tariffs are having a positive impact on gold, copper, silver prices and platinum metals. However, he also emphasized that this was a risky transaction, with two aspects: whether the tariffs were applied or not.
"This decision is like a launching price, making it very difficult to predict the market in the short term. I predict there will continue to be fluctuations in prices," he said.
Despite the uncertainty in the short term, Hansen believes that silver will hardly be taxed because the US depends heavily on imported supply.
Last year, US silver mines produced more than 1,100 tons of silver, while US demand reached more than 5,100 tons. Hansen explained that the US cannot increase domestic production enough to meet demand. Currently, the US imports the majority of silver from Mexico, with about 10% of the supply coming from Canada.
In the short term, Hansen predicted: "Gold prices could fall to a low of $11.50 an ounce. The important long-term support level is at 32.33 USD/ounce".
Hansen estimates that silver prices will surpass $35/ounce and could reach $40/ounce this year. He stressed that the large shortage of silver supply is a solid support for prices.
"About 55% of silver demand is for industry and this demand is still increasing. Although carbon reduction is currently a matter of concern, the electrification of the global economy is getting stronger," he said.
In addition, Hansen believes that silver will continue to benefit from the price increase of gold. Currently, gold prices remain above $3,000/ounce, he predicts gold prices will reach $3,300/ounce in 2025.
"If this happens and the gold- silver ratio returns to 2024 levels, silver prices will easily reach $40/ounce and could be higher. However, this will also come with great fluctuations," he said.
As of 0:00 on March 27 (Vietnam time), the world silver price listed on Goldprice.org was at 33.7 USD/ounce.
See more news related to silver prices HERE...
