Over the last few days, many articles have been published regarding the price of silver in the year 2021. Many of these articles are suggesting that the price of silver will be over $1,000 and under $10. But predicting the price of silver in the year 2021 might not be the right way to go about this. In order to determine the price of silver in the future, it is important to analyse the facts that will affect the price of silver in the near future. In this article we will discuss the factors that will affect the price of silver in the near future.
The next five years in India might actually be quite similar to the last 20 years in the country. There are high chances of politicians spending too much money in the next five years. Debts might expand exponentially and central banks might monetize and might inflate and deflate to maintain power to continue the transfer of wealth to a few from many. The Status Quo indicates that the price of silver will definitely increase over the next couple of years but not by a very big margin.
Deflationary factors can actually overwhelm the financial system and no one including the central bankers and politicians can reverse the deflationary forces. In a case like this, paper assets will definitely crash which will in turn lead to a slight increase in the purchasing power of silver.
Deflation and Hyperinflation
Due to the crashes caused by the deflationary forces, the government and central bankers will inflate currencies to hyperinflationary level. If this happens, the price of silver will actually send the price of silver shooting up to $150, or $1,500 or even $15,000 per ounce. It is very hard to predict the price of silver in a hyperinflationary scenario like this one.
The reaction of the government and central banks to the current deflationary situation will decide the price of silver in the future.