Second place is never as good as first place, right? Well, in this instance, it’s not. In fact, it’s better.
Silver is a precious metal that tends to be viewed as second in line with gold being the leading asset. And although gold went on a rally to break its historic all-time high in 2020, the silver metal saw some of the most significant gains.
Like most assets, silver experienced its annual low around March of 2020 with the news and impact of COVID. The metal eventually rallied over 115% towards the upside, reaching a seven-year high of over $28.
And some analysts believe that this was just the start of silver’s bull run. Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, believes that silver will continue to rally in 2021.
In a recent interview, McGlone was quoted, stating, “The precious metal will follow in gold’s footsteps towards its own record high.”
For this to happen, silver would have to surpass its all-time high of around $49.50 it set in April of 2011.
McGlone went on to comment, “Silver may be a primary metal at the forefront of favorable trends in electrification and quantitative easing, with technicals pointing to a nascent bull market, in our view.” “Uniquely precious and increasingly industrial, probabilities lean toward the metal — known as leveraged gold — following its yellow peer to new highs.”
This would be the fifth consecutive year that retail investors see the precious metal as the top asset in its class.
Canadian Bank CIBC is calling for an average price of $32 an ounce for silver in 2021.
Anita Soni, author of CIBC’s precious metals outlook, had this to comment: “Even though the commodity has already performed well year-to-date, this metal has the potential to provide investors with even more torque given the relatively smaller market for silver versus gold.”
Analysts at Commerzbank recommend that “every investor keep their eyes on silver” in 2021. The German bank emphasizes that they expect silver to resume its upward trend as the recovery of the economy will likely boost industrial demand.
It is said that bull runs happen in waves and last an average of 3.8 years. If that’s the case, and since silver has more than doubled since March, well, this could be the best time to buy silver.