Despite recent market volatility that has pushed silver prices below $30 per ounce, many analysts are not ready to give up on investing in this precious metal, such as Bank of America, which sees its strong potential for the future.

Recently, the precious metal strategist at Bank of America, Michael Widmer, predicted that silver prices will rise to $35 per ounce in the next two years.

As of now, the latest trading price of July silver futures is $29.552 per ounce, down from its previous high. However, Bank of America's target price shows that silver prices are expected to rise by more than 18%.

Regarding the current price trend of silver, some analysts point out that in the short term, even in the current correction, silver futures prices have managed to support above the 50-day moving average of the upward trend.

The upward trend has just begun.

In the past few years, investors have been constantly seeking to hedge geopolitical risks, and gold has always been the preferred safe haven asset. However, Bank of America predicts that silver's recent performance in the precious metal field has just begun, and now is the time for silver to shine.

Bank of America strategist Widmer said, "Due to the previous weak industrial demand, silver's performance has been inferior to that of gold. But as the global economy turns around, the performance of this metal should begin to improve. It is expected that the next generation of solar panels with higher silver content will become more popular, and other support is constantly emerging."

Widmer also stated that although there has been a wave of price increases in silver before, he still bullish about the second half of 2024 and 2025.

According to Bank of America's latest silver report, it said, "All of this may attract more investors into the market, creating a virtuous cycle that pushes prices higher."

In this environment, the bank confirmed its buy rating for silver stocks, and the two major silver stock choices it provided were Pan American Silver, headquartered in Canada, and Wheaton Precious Metals.

However, Bank of America pointed out that although silver as an industrial metal has great potential, silver prices need a rebound in investment demand in order to take off.

Lawson Winder, research analyst at Bank of America and the main author of the latest silver report, said, "We recognize that silver prices have not recently seen a decisive rise. Investors' demand is one of the reasons. We see that the market lacks interest in ETFs backed by physical support, which is also reflected in the CME's net non-commercial positions, trading volume on the Shanghai Gold Exchange/Shanghai Futures Exchange, and purchases of American metal coins."

Winder also added, "However, we also note that there are encouraging signs of commercial demand for silver, which may eventually attract investors and strengthen our constructive view of metal prices in 2024."