Silver price to shine the brightest in 2021, gold is third most popular asset
The silver market is garnering a lot of attention heading into 2021 and according to Main Street retail investors, it is the precious metal they will be keeping an eye on in the new year.
Investors have been waiting a long time for silver to finally live up to its reputation and outperform gold. For the fifth consecutive year, retail investors see the grey metal as the top asset in the precious metals sector.
This year, 1,015 people participated in Kitco News’ Outlook 2021 online survey. A total of 568 Main Street voters, or 56%, said they expect silver to fare better than other metals in the year ahead.
The bullish outlook for silver come as the precious metal has seen a historic rally since falling to $12 an ounce due to financial market turmoil due to the COVID-19 pandemic. Since its lows, silver prices have rallied more 115%.
In comparison, gold prices are up 25% from its March lows around $1,500 an ounce.
Many analysts also see silver outperforming gold prices in 2021. Low interest rates, a weaker U.S. dollar and rising inflation pressures will drive both gold and silver, which are both seen as monetary metals. However, improving economic activity next year will add another pillar of support for silver.
Some analysts see potential for silver prices to retest their all-time highs above $50 an ounce. However, most forecasts call for a more temperate rally with many seeing prices push above $30 an ounce.
Among financial institutions, Canadian Bank CIBC could be the most bullish on silver as they see prices averaging next year around $32 an ounce.
Reference: Kitco
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