The growth of Silver over the past year has 18 times exceeded the rate of Gold price appreciation.
Demand for Silver may rise to a six-year high this year amid increased industrial use of the precious metal and rising inflation.
Over the past 12 months, Gold has risen by 4.3%, while prices have fallen by 6.5% since the beginning of this year. Silver has gained 78% in price over the year. This is the best indicator among precious metals (Palladium +60%, Platinum +59%).
Since November, investors have been steadily reducing their investments in Gold ETFs (Exchange-Traded Funds). The volume of investments has fallen to about the same level as it was a year ago. However, in the case of silver, the situation is different: over the year, investments in Silver ETFs increased by a third.
Global demand for Silver in 2021 will grow by 11% to 1.025 billion ounces, the Silver Institute predicts. The main driver of growth will be the improvement of the macroeconomic indicators of the world economy. Demand for physical Silver could rise to a six-year high of 257 million ounces.
The company Heraeus Precious Metals recently published an analytical review, which notes that silver will show a better return in percentage terms this year than Gold.
The rise in Silver prices will be supported by inflation and industrial demand, as the global economy gradually recovers from the effects of the spread of Covid-19. The precious metal is in demand in the electronics sector, as well as in the production of solar panels.
In addition, precious metals are an excellent means of protecting your savings from inflation, especially during a crisis. In case of growing concerns about further acceleration of inflation, the demand for silver as a protective asset from investors will increase.