The silver price has pulled back in recent weeks, but has largely been on the rise since last October.
Where is the white metal headed in 2023? Peter Krauth, editor of Silver Stock Investor, thinks it could approach US$25 per ounce in the first half of the year and then may rise as high as US$30 in the year’s final six months.
“I think that this topping out in rates from central banks has essentially been priced in,” he said, noting that he expects the US Federal Reserve to hike by another 25 basis points at its March meeting before pausing.
“I think when you get more of an official stance from the central banks that, ‘Okay, now we’re on pause from all this hiking,” I think we’re going to see the precious metals start to pick up even that much more,” Krauth continued. “And that’s why my expectation for a considerably higher price in the second half of this year is quite strong.”
At its latest meeting, which wrapped up on February 1, the Fed raised interest rates by 25 basis points, and Krauth said he expects a move of the same size in March. After that he expects the central bank to catch its breath.
“It’s very likely, I think, that the Fed is going to pause at that point, and perhaps pause for a long time,” he said.
When it comes to getting involved in the silver market, Krauth emphasized that there are entry points for all types of investors, from lower-risk options like physical silver and royalty companies all the way down to the more risky exploration plays.
And although silver itself is known for its volatility, he believes that shouldn’t be a deterent. “Don’t let the volatility scare you,” Krauth concluded. “Expect it, plan for it — adjust accordingly by position sizing and by layering in.”
Watch the interview above for more from Krauth on silver. You can also click here for the Investing News Network’s full Vancouver Resource Investment Conference playlist on YouTube.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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