Price of silver hit a 3.5-months high at the start of the 2021. But, analysts claim, it is only the beginning. Silver is due for a renaissance in this year. Markets project an all-time high for an ounce of the “cheaper cousin” of gold. On the first working day of this year, silver was valued at about $27.5 per ounce. But experts on the precious metals trading expect that value of an ounce of silver is to reach $40 by the end of 2021, with hopes that even $50 per ounce is a real possibility.
2021 as 2011
Price of silver has reached historical record in 2011. At that time, an ounce of silver was worth almost $50. Bloomberg Intelligence senior commodity strategist Mike McGlone believes that 2021 will set a new record.
– Uniquely precious and increasingly industrial, probabilities lean toward the metal — known as leveraged gold — following its yellow peer to new highs, says McGlone.
The housing crisis saw silver on a path to the value of $50 per ounce. According to McGlone, in 2021 we have similar conditions in the market.
– Annual technical indicators for silver are akin to those during turns higher at the start of the new millennium and following 2008. We see the metal following a similar trajectory as the aftermath of the financial crisis toward $50 an ounce, but with greater potential for staying power on a path paved by gold, claims McGlone.
Price of silver to outperform gold
One key factor to watch for is the gold and silver price ratio. If an ounce of gold is worth more than 70 ounces of silver, the cheaper metal is likely to grow its price at a higher pace than the precious metals sector leading metal.
This trend happened last year. The price of gold end year price had risen 24 per cent. Silver had reached 47 percent increase in value at the same time. In 2020 silver has regained its “safe haven” status. In 2021 it should capitalize this status in a bullish environment.