Silver price predictions for 2017 have the white metal outperforming gold and climbing as high as 33% by year’s end.

Nearly all of the 23 precious metals analysts polled in the London Bullion Market Association‘s annual survey have bullish silver price forecasts.

The LBMA asks each of the nearly two dozen participants for their high and low estimates for each precious metal.

The average high gold price prediction was for a 2017 increase of 11.2%. The average high silver price prediction was for a gain of 14.7%.

The average silver price forecast came in at $17.77, just below the current silver price of about $18 but 7.1% higher than the early January average $16.59 (LBMA measures its precious metals predictions against the early January price average.)

Using that early January benchmark, 20 out of the 23 analysts in the LBMA survey were bullish on the price of silver in 2017.

Here’s what these experts think will have the most influence on silver prices in 2017…

 

Why These 2017 Silver Price Predictions Are Mostly Bullish

While generally positive, the analysts saw some risks to silver this year. Many of these risks it shares with gold – the threat of the U.S. Federal Reserve raising interest rates, a stronger dollar, and rising stock prices pulling money away from precious metals.

Another possible drag on the price of silver, several analysts said, could come from profit-taking by long-term holders of silver exchange-traded funds.

But overall the analysts surveyed by the LBMA see more reasons for silver prices to rise in 2017.

As with gold, widespread global uncertainty – from the Trump presidency to the rise of populism in Europe to the increasing unpredictability of countries like Russia, Iran, and North Korea – could launch a rally at any time.

Unlike gold, half of silver demand comes from industry. So silver prices could get a push from strengthening economies, which also will boost silver demand from the jewelry industry. And if President Trump follows through on his infrastructure spending plans, it will stimulate overall industrial commodity prices, also helping to lift silver prices.

Source: Money Morning