Silver Price To Surpass $30 An Ounce In 2021 Despite Near-Term Turmoil – Metals Focus


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(Kitco News) – Caught in a consolidation pattern, the silver market could remain under pressure in the near term, but a research firm says the long-term fundamentals of precious metals remain intact.

In a report on Tuesday, analysts at UK research firm Metals Focus said that due to resilient demand, gold prices should end the year near their August highs; Meanwhile, looking to 2021, analysts say they see silver prices pushing “well above” $30 an ounce.

The comments come as silver prices fell via initial support at $24.00 an ounce. December Comex silver last traded at $23.48 an ounce, down nearly 4.5% on the day.

Analysts noted that even during silver’s nearly two-month period of consolidation, investment demand remained robust.

“The white metal’s inability to breach the psychologically important $30 level initially prompted profit taking in late August and early September. At the time of writing, however, much of this outflow has already been reversed, leaving the global holdings now only a fraction below their With 2020 to-date inflows standing at around 316 Moz, silver ETPs are on track for their highest annual growth ever,” said the analysts.

Although gold prices have hit all-time highs this year, Metals Focus doesn’t see that for the silver just yet.

Analysts said they see a new rally in silver coming after the Nov. 3 U.S. general election.

“Almost regardless of the outcome of the US election, further large-scale fiscal and monetary stimuli seem inevitable, given an uncertain economic recovery and still high COVID-19 cases. The same may apply to Europe where record infections and new lockdown measures have also cast doubt on the strength of the anticipated economic recovery, so the case for silver (and gold investing) will remain strong,” said analysts. 2021.”

Although Metals Focus remains a long-term silver bull, they note that investors should expect greater short-term volatility as expectations for global economic growth continue to shift.

“A slower-than-expected economic recovery and still high unemployment rates around the world will continue to weigh on the recovery in industrial, jewelry and silverware demand,” analysts said.

Meanwhile, the UK research firm said growing mining supply could also be a headwind for prices. They expect to see a continued oversupply of silver this year and into 2021.

“Overall, the silver market should therefore remain in physical surplus. This implicitly means that investors will be called upon to absorb these excess supplies. This expectation underpins our baseline forecast for silver, d ‘where our belief that prices will continue to strengthen for the foreseeable future,’ the analysts said.

Warning: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.

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