Silver will bash through $US30/oz barrier in 2021, expert says

Never fear, silver bulls. The price rally will resume later this year and continue well into 2021, says London-based consultancy Metals Focus (reports Stockhead).
30th October 2020
Resources Rising Stars

Never fear, silver bulls. The price rally will resume later this year and continue well into 2021, says London-based consultancy Metals Focus (reports Stockhead).

Silver prices surged to ~$US29/oz in early August, falling just short of the psychologically important $US30/oz barrier, before easing back into a $US24-$US25/oz ‘holding pattern’.

That still represents a +36 per cent gain for 2020 so far, with gold up ~25.5 per cent over the same period.

And sentiment has remained generally positive.

That’s because if investors are positive on gold — optimistic on the macro circumstances that will continue to drive the gold price higher — then they are also likely to back silver.

Going forward, almost irrespective of the outcome of the US election, fresh large-scale fiscal and monetary stimuli seems inevitable.

“The case for silver [and gold investment] will therefore remain strong,” Metals Focus writes.

Metals Focus expects to see silver trade “well above” $US30/oz ($42/oz) next year.

History also tells us that silver has the ability to outperform its precious metal rival once it gets going.

“As silver has restored its ability to outperform its yellow cousin over the summer, there is plenty of room for additional investment inflows,” Metals Focus says.

“This is the main assumption behind our forecast that the silver price will break through the $US30 mark during 2021.”

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