Commodities

Silver Continues its Bull Rally, Leaves Gold Behind

Silver Continues its Bull Rally, Leaves Gold Behind

Silver is refusing to stop and has given better returns than gold in 2020. Last week, the white metal rose by around 15% to touch the seven-year high mark. Experts predict it to be a start of a bullish rally fuelled by low-interest rates, disrupted production, investment demands, and a resurgent demand in industrial production. 

Silver has almost given a 100% return in since March as it touched $22 per ounce from a low of $11.62 per ounce, four months ago. The metal has left gold behind in performance which gave a 22% jump to reach $1800 per ounce.

People are stocking both the metals in the hope that both of them will hold their value as central banks are launching several stimulus packages to boost the economy from the COVID-19 pandemic. Low returns on Bonds doesn’t seem to attract investors as compared to gold and silver.

In the meantime, silver is also becoming cheaper to buy from other currencies for people as the dollar is weakening, and thus, stimulating the rally. Consumption and demand for silver are also expected to grow significantly as industries, like solar panels, are reopening.

Moreover, technical indicators and signals on trading charts are showing silver as overbought, and analysts at Reuters suggest that the metal will struggle to rise high and would trade at $20.03 per ounce next year.

In opposite to it, the analysts at Citi argue that the silver would continue its rally and people will continue to buy it protect their wealth amid the market ups and downs due to corona crisis. The projections assume the prices to go around $25 an ounce in the next 6-12 months.

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