Silver going into 2023 We have been eying several possibilities that could keep silver prices high.

Supply chain

Supply chain will play a key roll in how Silver will be priced. If demand stays strong and the supply chain can’t keep up we will see a spike in silver prices like we saw in Q4. However if demand drops due to inflation and other economic variables we can possibly see silver prices drop going into Q1 of 2023. Supply chain issues.

shortages

We define shortages as more demand than actual supply, at current levels. We aren’t yet declaring the world has run out of silver, or that this outcome is imminent. However, it sure does seem that the silver stockpiles are falling at our current state. See this chart from the Silver Institute, with data provided by Metals Focus.

We know that for the last four years; the market has demanded a substantial amount of silver more than what the mining outfits were capable of producing each year. A lot of the buying has come from the Wallstreet Bets, Wallstreet Silver phenomena, during the 2020 Pandemic. according to new data recently released, the deficit has already widened more than they originally predicted for this year due to higher-than-normal demand. The chart from the Silver Institute’s Interim Market Report revises 2022 shortages to a whopping 194 million ounces!

Interest rate Hikes.

If rates continue to jump, we will more than likely see a decrease in metal buying as interest rates will try and slow the economy. However, it appears there is still plenty of spending going on as we saw Black Friday sales due over 9 billion in sales. (However technically speaking it would be less than years previously since the dollar is losing its power) You can read more on the black friday sales here.

What Happens in 2023

Silver going into 2023 looks very promising as the world is demanding more silver than we actually have. Mines are currently not keeping up with supply across a now 5-year trend. The ultimate question as a trader and or investor in silver is when will markets realize shortages are in fact happening? For silver stackers and buyers, it’s virtually impossible to time the market perfectly, but for when the masses wake up it may be too late. Precious metals are not on the radar as an everyday asset class since the government ditched the gold and silver backed dollar for fiat and Petro dollar.