Is silver a good investment in 2023?

With the ongoing economic and geopolitical instability, you might wonder if it's a good time to invest in silver in 2023.

In this article, we’ll answer your most pressing questions on silver. By the end of this article, you can expect to have a clearer view of the following:

• What is the price prediction for 2023?
• Is silver a good investment in 2023?
• What are the pros and cons of investing in silver?
• What is the best time to buy silver for investment?
• How to buy silver for investment purposes?

Let’s dive in!

Silver price prediction for 2023

In 2020, the price of silver rose to above $20 per ounce for the first time in four years. Since then, the precious metal’s price has mostly stayed above that level. It even went above the $25 mark in May this year.

Nicky Shiels, the Head of Metals Strategy at MKS PAMP GROUP, predicts that the demand for silver will be higher than its supply. Here is a brief overview of her predictions:

• Despite the growing risks of a recession, industries and the general public are buying silver. So this is why the price of silver is expected to be supported and not fall below $22 per ounce for the rest of the year.
• Industrial demand for silver is projected to reach new heights. But there are also supply risks due to this year’s social unrest and industrial action in Latin America and Mexico. These factors may lead to a deficit of more than 150 million ounces.
• Compared to gold, there is relatively less silver available in known exchanges and LBMA (London Bullion Market Association) vaults. In simpler terms, less silver is readily available for trading or use than gold.

In their 2023 report, the Silver Insitute also stated that silver demand increased by 18% last year, reaching a record high of 1.24 billion ounces. This meant there were huge supply deficits. For the upcoming years, they’re also expecting silver shortages supporting Nicky Shiels’ silver predictions.

Finally, the German-based company Heraeus also predicts that silver demand will likely increase later in the year. That’s because the production of polysilicon might increase, which is part of harvesting solar energy. This, in turn, means the metal’s price might rise.