Citigroup analysts foresee a significant increase in silver’s value, potentially hitting $30 per unit within the next 6-12 months, according to the multinational bank’s latest silver assessment. The experts at Citi predict an ongoing decline of the U.S. dollar and anticipate a decrease in the federal funds rate at some point.
Silver’s Value Poised to Surge to $30 per Unit in 6-12 Months, Citigroup Analysts Foresee
On Thursday, May 25, 2023, the price of silver per ounce lingers just above the $23 mark after experiencing nearly a 4% decline over the past week. Nevertheless, half-year data reveals that silver has risen 6% against the U.S. dollar. Despite recent setbacks in precious metal valuations, market experts forecast strong performances from silver and gold in 2023 and beyond. A Citigroup report highlights that their analysts project silver to climb to $30 within the coming 6-12 months.
“We think recent price weakness offers a strong dip-buying opportunity, reiterating our call for $30/oz silver over the next 6-12 months as U.S. growth rolls over, even if emerging markets growth stagnates,” stated Citi’s market strategists.
The financial specialists at Citi are not alone in their optimism toward precious metals. Last month, a Bank of America (BOFA) commodity strategist suggested gold could soar to $2,500 an ounce this year. A fortnight ago, BOFA analysts further implied that reduced mining supplies could contribute to potential gains for silver. Global investment bank UBS also predicts a record-breaking high for gold this year, while other commodity strategists have hinted at substantial gains for both gold and silver owing to the recent banking crisis.
In Citi’s most recent report on silver, their analysts declared that “silver would rally in anticipation of the fall in U.S. interest rates and real yields that will likely accompany an anticipated rollover in U.S. growth.” Previously estimating that silver might reach the $30 range is not new for Citigroup — the bank’s analysts spoke of a “distinct possibility” in late April that silver could hit $34 per ounce within 6-12 months. The latest Citi evaluation for May’s end notes that “weaker competition for investment capital from other asset classes should also support silver pricing as markets increasingly price U.S. recession risks.”
Currently at just above $23 per ounce, silver will need more than a 30% boost to reach Citi’s projected price target.
What are your predictions for the future of silver? Share your thoughts on whether you believe it will reach the projected $30 mark within the next 6-12 months in the comments section below.
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