Silver Prices Forecast for 2024 According to Bank of America

Bank of America holds an optimistic outlook on silver prices, forecasting growth in the latter half of 2024 and extending into 2025.

Michael Widmer, the Metal Strategist at BofA, anticipates the average silver price will reach $35 per ounce by 2026, compared to the current spot price of $29.28 per ounce. This positive outlook is influenced by several factors, including an expected cessation of central bank interest rate hikes and a rise in investments in precious metals.

Although BofA acknowledges the strong performance of silver prices year-to-date, they believe there is still potential for further increases. They expect that the upward momentum in the gold market, predicted to hit $3,000 per ounce by 2025, will also positively impact silver prices.

The report does, however, note the difficulty in identifying pure silver mining equities. Silver is typically mined alongside other metals such as lead or zinc, making it challenging to find investments exclusively focused on silver.

BofA commented, “Unlike gold, ‘pure’ silver exposure via mining equity investments is difficult to find.” They highlight that even companies primarily engaged in silver mining often derive less than 50% of their revenue from silver itself.

Despite this challenge, BofA provides recommendations for North American investors aiming for silver exposure. Their Buy-rated equities include Pan American Silver and Wheaton Precious Metals.

The report emphasizes Pan American Silver’s strong financial position, potential for production growth, and diverse assets. Wheaton Precious Metals, recognized as a royalty and streaming company, is noted for its substantial silver revenue, projected at 36% for 2024, alongside industry-leading growth rates.

For global investors, BofA has assigned a Neutral rating to a UK-based company known for its silver exposure. While acknowledging its popularity, BofA expresses concerns regarding potential operational challenges and limited growth opportunities at the company’s mines.