If there’s one thing investors should be paying close attention to, it’s silver prices. The gray precious metal is severely undervalued, and could skyrocket in 2017.
You see, silver is one of the best things to have if you expect inflation in the long term; silver prices increase when inflation rises. In fact, if you look from a historical perspective, for every one-percent increase in inflation, silver prices rise by two percent.
Despite witnessing wild fluctuations, silver prices are up over 1000% in the last 46 years, as inflation has caused prices to increase by 500%.
Silver Price Outlook for 2017
Here’s what you must understand: over the past several years, silver investors have had a very rough time. If they held bullion, it’s down roughly 65% from its highs in 2011. If they held silver mining stocks, they are down significantly as well, and some are not even around anymore.
Saying the very least, investors’ confidence is very low towards silver.
But, as silver prices have held relatively strong throughout 2016, it should give some hope to those who have ditched the market for better opportunities elsewhere. They could come back and buy.
If inflation is higher in 2017 and inflation expectations continue to increase, don’t be shocked to see silver prices surging very quickly. We could even break above the $30.00 level. Obviously, time will tell more.