Will Silver Shine Brighter Than Gold In 2021?Silver prices are undergoing the usual correction as traders bank profits following a solid four-day rally.
Silver prices opened the week on a bullish note fuelled by the massive $1.9 trillion U.S economic stimulus package, which was finally signed-off by President Biden on Wednesday.
While prices are likely to remain volatile in the short-term, don’t write Silver off just yet.
75% of retail CFD investors lose money
After receiving a wave of retail attention earlier this year and briefly trading above $30 an ounce, Silver’s mainstream media coverage is fading. But traders are still buying up the precious metal on every dip, which indicates that the Silver squeeze is far from over.
Silver is definetly the best trade in 2021. There is a lack of Silver around the world. There is not much Silver at any refineries and getting your hands on physical Silver is still difficult. In fact, Silver is now rarer than Gold, which means there is a risk of a real Silver squeeze this year.
And let’s not forget the whole climate change angle.
Now the $1.9 trillion stimulus package has been passed, Democrats will turn their attention to President Biden’s ambitious goal of spending big on renewable energy infrastructure and solar power technology to combat climate change.
Silver is a key component in renewable energy and solar power technology. Based on our proprietary research, photovoltaic demand for Silver could exceed 3000 tonnes in 2021 – and that’s just the beginning.
As governments around the world pursue more aggressive environmental policies to combat climate change – this alone will continue to be a major driver of Silver demand for years to come.
Where are prices heading next?
Watch The Commodity Report now, for my latest price forecasts and predictions:
For a look at all of today’s economic events, check out our economic calendar.