VIDEO — David H. Smith: No One Knows Silver's Real Value, But We'll Find Out

David H. Smith: No One Knows Silver's Real Value, But We'll Find Outyoutu.be

After a lackluster performance in 2021, silver has remained relatively rangebound this year, stuck between about US$22 and US$24 per ounce even as its sister metal gold breaks higher.

Will that change as 2022 progresses? David H. Smith, senior analyst at the Morgan Report, believes it's possible.

"I do think that this year is going to be a profoundly interesting year," he said. "This is the first time I've ever gone on record in print ... I'm willing to be wrong on this, but I do believe that this year silver has the potential to challenge US$50 — I don't know if it'll be successful or not, (but) I think it may."

Smith, who is also an ambassador for the LODE Digital Silver and Gold Project, noted that the key is for silver to get above US$25 or US$26. If it can do that, then it could quickly move up US$5 or US$10 and continue on from there.

But that's not to say the white metal's path will be straight up. Smith noted that volatility will continue for both silver and gold, and reminded investors how important it is to stand their ground.

"The bull market loves to take as few people along as possible, and many people have been worn out and scared out," he explained. "And I understand why that is for them, but I also understand that if you want to be on that bull market, you've got to kind of buck yourself up and be stronger. You have to control your emotions, and you have to understand what the market is doing to itself and to you in order to keep your senses about you."

Speaking more about silver, Smith said there's a disconnect right now between its price and its value.

"The value of silver — not you, or I or anyone on the face of the Earth knows the value of silver today, but we're going to find out before long," he said. "We're going to find out, and it's not going to settle ever again at US$28."

Smith anticipates a major spike before the precious metal comes to rest at a level much higher than it is today. "It'll be historic, and it won't be something that happens twice," he warned.

Watch the interview above for more from Smith on the silver price, as well as supply and demand dynamics and why he thinks silver juniors are worth looking at right now.

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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.