Bank of America’s Bold Silver Price Predictions for 2024 – Are You Ready?

Key Takeaways

• Bank of America predicts an increase in silver prices through 2024 and into 2025.
• BofA Metal Strategist Michael Widmer forecasts a $35/oz average for silver in 2026.
• Investment in precious metals is expected to increase due to an anticipated end to central bank interest rate hikes.
• Pure silver mining equities are challenging to find compared to gold-focused companies.
• Recommended Buy-rated equities for silver exposure include Pan American Silver and Wheaton Precious Metals.

Bank of America is optimistic about the future of silver prices, with predictions indicating a rise in the latter half of 2024 and continuing into 2025. Michael Widmer, BofA’s Metal Strategist, anticipates silver reaching an average price of $35 per ounce in 2026. This positive outlook is backed by factors such as the expected halt in central bank interest rate hikes and growing interest in investing in precious metals.

Despite the already strong performance of silver prices so far this year, BofA believes there is still room for growth. They foresee a beneficial impact from the gold market, with gold prices also expected to climb to $3,000 per ounce by 2025.

However, one challenge highlighted in the report is the difficulty in finding pure silver mining equities. Unlike gold, where companies focused solely on gold mining are more common, silver is often produced alongside other metals like lead or zinc. This makes it tricky for investors to find companies with significant revenue derived solely from silver mining.

In terms of recommendations for North American investors looking for exposure to silver, BofA suggests considering equities such as Pan American Silver and Wheaton Precious Metals, both of which have Buy ratings. Pan American Silver is praised for its strong financial position, potential for production growth, and diversified portfolio of assets. Wheaton Precious Metals, a company specializing in precious metals royalties and streaming, stands out for its substantial silver revenue stream (expected to be 36% in 2024) and impressive volume growth within the industry.

For investors on a global scale, Bank of America gives a Neutral rating to UK-based Fresnillo (LON:), a popular choice for silver exposure. However, BofA expresses concerns about potential challenges at Fresnillo’s mines and limited growth prospects for the company.

FAQ

1. What is Bank of America’s forecast for silver prices in the second half of 2024 and into 2025?

Bank of America predicts an increase in silver prices during the latter half of 2024 and continuing into 2025, with Metal Strategist Michael Widmer forecasting an average price of $35 per ounce in 2026.

2. Why does Bank of America believe there is still room for growth in silver prices?

Despite the strength in silver prices so far this year, BofA anticipates further growth due to the positive spillover effect from the gold market, which is also expected to see increases in price, reaching $3,000 per ounce by 2025.

3. Why is it challenging to find pure silver mining equities compared to gold-focused companies?

Silver is often produced alongside other metals like lead or zinc, making it difficult for investors to find companies with significant revenue solely from silver mining. This contrasts with gold-focused companies, where pure gold exposure is more common.