Daily Management Review

2021 is Likely To Be The Year Of Silver


Analysts expect silver to perform “better than gold”.

Precious metals have seen “a spectacular year” in terms of gains, while in 2021 the rising trend is likely to continue as silver is thought to be at the fore front. However, analysts worry about “the prospects for gold” while the world’s economy is on the way to recovery post the COVID-19 impact.
Due to the pandemic, investors began to pile up stock in a bid to “protect their wealth” which along with “supply deficits” increased the value of “gold and palladium” over twenty percent in 2020. As result, silver saw an increment of “47%” while platinum gained by ten percent. According to Metals Focus’ consultant, Philip Newman:
“We are going to see new record highs for gold and palladium (in 2021)”.
“But silver will see the chunkiest gains”.
When the economic growth slowed in 2019, traditional way of investing in gold was thought to be beneficial, while the pandemic only “accelerated the rally” whereby in August the gold prices reached “$2,072.50”. The pandemic restrictions hampered “physical gold” demand but saw a growth in investment, as the holdings of SPDR Gold Trust, the “largest gold-backed exchange-traded fund” in the world, record the “biggest” annual gain since 2009. However, Reuters reported:
“Prices then dipped to around $1,900 as investors stopped buying and vaccines were deployed against the virus, encouraging investment in assets that perform well during periods of economic growth”.
According to analysts, the enormous “government debt”, negative “real returns” on bonds and threats related to “market turbulence” and inflation will help gold to “persist in 2021”, whereby possibly rising by yet another twenty percent. Furthermore Reuters added:
“A safe-haven asset like gold, but also an industrial metal used in products including solar panels, silver climbed from $18 an ounce in January to almost $30 in August before slipping to around $25”.
In fact, analysts expect it to perform “better than gold” given its “dual role” and “greater volatility”.