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Gold and silver at record prices

Amid the uncertainty over the recovery of economies around the world, investors are increasingly looking to precious metals as havens of value. This pushed up the prices of gold and silver in the last week. Yesterday, gold reached $1958 an ounce and silver touched $24.40.

Since July 20, both metals accumulated increases in a year. Gold prices surged by 30% and silver saw a 45% gain.

Experts explain that if the monetary issues go on much longer, in time, gold would operate toward an upward trend.

Yesterday, Goldman Sachs, an American multinational investment bank, made some modifications. It raised its forecast for the price of gold in 12 months to $2,300 per ounce. This is in light of the expectations of a further decline in real interest rates in the United States and a favorable environment for the metal.

The bank said it sees inflationary concerns continuing well into the economic recovery, and gold being used as a hedge against the dollar.  

 

There are price rise expectations in the silver market

Goldman Sachs also raised its forecast for the price of silver to $30 an ounce. This was driven by higher bullion values ​​and better prospects in industrial demand industrial for silver, particularly in solar energy.

Ryan Giannotto, the director of research at GraniteShares, has stated that silver is not even halfway to its record high. Even though he doesn’t expect silver to more than double in the immediate future, he still does not rule out possible extreme scenarios. 

It takes more than 80 ounces of silver to purchase one ounce of gold. The ratio has faced a significant decline lately. Still, it is well above the typical gold to silver ratio. 

Ross Norman, from Metals Daily, states that the ratio between the metals rose to a 4,000-year high to 126 on March 18. It has been clear for some time that silver had been extremely cheap compared to gold. The ratio is still historically high, implying there is an outlook for greater gains in silver still. Gold often looks to silver to prove its rally. If the gap between the two metals becomes too wide, as it has grown recently, then gold will hold off. 

For those looking to invest in the silver market, Ed Moy, chief market strategist at gold retailer Valaurum, advises futures contracts. They are good for skilled speculators who know how to navigate complex transactions. For individual investors, silver bullion coins are a better way to invest. According to a spokesman for the US Mint, this year, the bureau has shipped 604 thousand more ounces of silver bullion compared to the same time in 2019.

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