2018 Silver Price Forecasts and Predictions From the Big Investment Banks

Here at GoldSilver we’re not huge fans of commercial banks. Deceptive practices, outrageous fees, viewing customers as prey instead of partners.

But they do control enormous amounts of capital, so keeping an eye on where they stand vis a vis the gold price is worth monitoring.

So, presented here without further commentary, is a sampling of current institutional views on gold:

Goldman Sachs:

“Goldman analysts look for silver to fare better than gold in 2018. Goldman looks for silver to be roughly flat over the next six months and increase over the next 12 months. The bank listed a 12-month silver price forecast of $17.20.”

Td Bank:

“Considering silver’s underperformance, its traditionally higher volatility and historic relative strength during periods when investors are building gold exposure, the white metal is on track to outperform.” [2018 price prediction: $18.18]

HSBC:

We anticipate stronger silver prices in 2018. While strong financial markets may present headwinds to silver rallies, any resurgence in risk may spark safehaven demand.” [2018 price prediction: $17.92]

UBS:

“The impact of a rally in prices on silver should be particularly amplified given silver’s underperformance in 2017 – there should be more catching up to do in this case.” [2018 price prediction: $17.40]

Macquarie:

“We think 2018 could be the year in which it finally recovers its mojo. We expect the world economy to have another good year, sufficient for silver to re-rate against gold in line with its historical relationship to the strong performance from other industrial metals.” [2018 price prediction: $20.00]

Scotia:

We believe there is upside for silver given the relatively small speculative net long positions and historically high gold to silver ratio even as base metal demand rises.” [2018 price prediction: $18.50]

Bank of China:

We think silver has the opportunity to move higher and behave even better than gold in 2018. We expect silver supply to fall short of demand against a background of rising demand from industry and decreasing silver production.” [2018 price prediction: $17.60]

Commerzbank:

“At a gold to silver ratio of more than 78, the silver price is low in historical terms. The positive economic development is likewise an argument in favour of silver because it means that industrial demand is likely to become even more dynamic – which accounts for more than half of total silver demand.” [2018 price prediction: $17.25]

ICBC Standard Bank

“After 18 months of underperformance and with investors underweight in silver, we believe there is some scope for it to play catch-up with gold.” [2018 price prediction: $17.35]

Natixis

“Silver prices are to continue being strongly correlated with gold, the latter being the main driver. The metal should be affected by the same forces behind gold prices.” [2018 price prediction: $16.15]

Standard Chartered

Silver’s supply and demand dynamics support higher prices in light of stagnating mine output and firming industrial demand.” .” [2018 price prediction: $18.30]

Société Générale

Demand and supply fundamentals on the silver market are improving, and we expect demand to exceed supply in 2018, primarily driven by a significant shortfall of primary mine production (-10%).” [2018 price prediction: $16.00]

Citigroup

“We note industrial silver demand continues to grow, while other end-use sectors shrink in 2018.” [2018 price prediction: $16.70]


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