Experts believe that silver could perform better than gold in the next 12 months.
Positive trend for precious metals will continue into 2021 and silver will see the “biggest gains”, analysts predict
The coronavirus pandemic prompted investors to withdraw to safe havens such as precious metals. This, coupled with supply shortfalls, pushed gold and palladium prices up more than 20% in 2020, while silver was up 47% and platinum 10%.
“We’re going to see new all-time highs for gold and palladium [in 2021]. But silver will see the biggest gains,” said Philip Newman of consultancy Metals Focus. The price of gold began to rise as economic growth slowed in 2019, but the process accelerated during the pandemic and in August this precious metal reached its all-time high of $ 2,072.50 per ounce.
While demand for physical gold was affected as the virus triggered global closures, investment demand increased, as reflected by the holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, which registered its biggest annual gain since 2009 at around 30%. Currently, prices are down to around $ 1,900 an ounce amid the news about covid-19 vaccines.
According to analyst Ross Norman, huge government debt, negative real bond yields, and threats of inflation and market turbulence will persist in 2021, which is good for gold, which could rise another 20% over the next few years. 12 months.
Meanwhile, silver – which in addition to being a safe haven is also an industrial metal used in various products – rose from $ 18 per ounce in January to nearly $ 30 in August before falling to about $ 25 per ounce.
Experts believe its dual role and higher volatility mean silver could outperform gold as economic growth recovers. Additionally, US President-elect Joe Biden’s intentions to use more clean energy could drive greater use of this metal.