04 Jan Silver tipped to outperform other precious metals in 2021
Trading analysts are anticipating further gains for precious metals in 2021, with silver set to deliver the strongest price rise against a backdrop of the global economic recovery from the COVID-19 crisis.
The pandemic compelled investors to protect their wealth by pouring funds into ‘safe haven’ precious metals. This pushed gold and palladium prices up by more than 20% this year, while silver rose 47%, and platinum 10%.
“We are going to see new record highs for gold and palladium [in 2021],” said Philip Newman at consultants Metals Focus. “But silver will see the chunkiest gains,” he added.
While spiralling government debt, negative real returns on bonds and threats of inflation and market turbulence will continue to support gold prices, analysts see silver outperforming due to its uses in industrial settings.
Silver is a component in myriad technological devices and in products such as solar panels – which are set to be manufactured in larger quantities as part of US President-elect Joe Biden’s US$2 trillion clean energy drive.
In 2020, silver climbed from $18 an ounce in January to almost $30 in August, before slipping to around $25 at the end of the year.