While gold, the world’s most prominent precious metal, has taken the bulk of attention with its massive rise in value, 2024 has, in many ways, been the year of commodities – hard and soft alike – with assets including copper, cocoa, and coffee seeing significant price fluctuations and some, at least briefly, hitting new all-time highs (ATH).
Silver has itself been no exception and the metal – used in various crucial industries including as a key component in electronics and green energy equipment – and, though nowhere near its 2011 highs, has seen a significant rise.
In fact, having risen 21.40% since the start of 2024 and 5.46% in the last week of trading, silver price today stands at an impressive $28.83 per ounce.
Picks for you
Given the commodity’s performance this year so far and the chance that it may only rally higher, Finbold decided to consult the most advanced model of OpenAI’s flagship artificial intelligence (AI) platform – ChatGPT-4o – on where silver might find itself at the very end of 2024.
ChatGPT sets silver price for end of 2024
Upon examining silver’s trajectory since January, as well as the worldwide happenings of the year so far, ChatGPT concluded that silver is likely to be in the range between $30 and $33 per ounce in late December, and assigned a 60% likelihood to the target.
According to the AI, the persistent economic uncertainty and recessionary fears, geopolitical tensions, industrial demand among the growing green and technology sectors, and market positivity toward commodities all contribute toward such a possible outcome.
ChatGPT offers a bullish scenario for silver
The AI, however, also explained that the very same factors that led to its original price target could, especially if they are bolstered by factors such as a major green energy stimulus package, have a greater-than-anticipated effect on the price of silver.
In such an optimistic scenario – optimistic for silver at least, as it also assumed an even worse geopolitical situation – silver might stand in the range between $36 and $39. Though ChatGPT considers this sequence less likely, it isn’t overly skewed as it has been given a 45% probability.
ChatGPT offers a bearish scenario for silver
Finally, ChatGPT conceded that it is possible that the global economies will recover quicker than expected leading to higher inflation and – in turn – to higher interest rates. Such circumstances could lead to silver becoming less appealing, especially compared to bonds.
Silver could also suffer a price hit should the mining and refining industry achieve a technological breakthrough that would lead to a far greater availability of the precious metal. Conversely, a development in another area – industrial or political – could lead to less demand for silver.
According to ChatGPT, there is an approximately 55% probability of at least some of the bearish factors coming into play and driving the price of silver back down to the $22 to $25 range.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
