Saad Ullah
Chris Marcus of Arcadia Economics discusses the potential for silver to reach US$50 in 2024, highlighting factors driving the market and predicting volatility for the short term.
XAG Price Forecast: Could It Reach US$50 in 2024?
Chris Marcus, founder of Arcadia Economics and author of "The Big Silver Short," has speculated on the future of XAG prices, suggesting that while a rise to US$50 per ounce in 2024 is possible, it remains unlikely. Marcus anticipates considerable volatility for the white metal in the short term.
Marcus highlighted that silver's recent performance, climbing above US$30 per ounce, mirrors gold's movements since mid-February and early March. This trend has been driven by market expectations that the US Federal Reserve would cut interest rates, which has yet to occur. "It's been interesting that you would see gold start rallying then, and then XAG follow," Marcus noted.
US Debt and Global Economic Uncertainties
Economic forces such as the growing US debt, increasing deficits, and the expanding Federal Reserve balance sheet have contributed to the upward pressure on both gold and silver. Additionally, geopolitical events, including the US discussing the seizure of frozen Russian assets to aid Ukraine, may have compounded these effects. "I wonder if it was the culmination of a lot of these things that have been building for a while," Marcus suggested.
The XAG Institute's projection that 2024 will mark the fourth consecutive year of deficit in the silver market is another critical factor. Marcus explained, "I don't think we're at a shortage of silver yet, but certainly we have a tight market." This tightness, combined with other economic pressures, traditionally leads to significant price movements in silver.
Long-Term Outlook for XAG
When considering silver's potential for 2024, Marcus acknowledged the possibility of prices reaching US$50 but emphasized the uncertainty. "I think silver in the long term — everything that we've talked about is why it's still to me a good long-term bet," he stated. He expects significant volatility in the short term, with scenarios that could drive silver to US$50, although he refrains from guaranteeing such an outcome.
Market participants should closely monitor underlying economic factors and geopolitical developments, which could influence silver's price trajectory. Marcus pointed out that while certain conditions could propel silver to new heights, the market's inherent volatility means investors should be prepared for rapid changes.
Conclusion
As XAG continues to navigate a complex landscape of economic and geopolitical influences, the possibility of reaching US$50 in 2024 remains an intriguing yet uncertain prospect. Investors are advised to stay informed and cautious, considering both the long-term potential and short-term volatility that Chris Marcus highlights in his analysis.
Saad Ullah
