The silver market will no longer be the same

By 11/03/2021News
Morning Stock News

Gold  1734,96

EURUSD   1,1922

DJIA  32405,50

OIL.WTI  64,865

DAX   14553

For quite some time, investors have disliked silver because of its high volatility and difficulty in predicting prices. Recent data shows that the time has come to take another look at this metal and evaluate the possibility of allocating it a place in an investment portfolio.



The price of silver was often boring to watch, as it almost always moved with gold. After the COVID-19 epidemic began, this movement changed. Silver began to trade in a wide range between $23 and $28, while gold began a slow decline until now. It is to be assumed that from 2020 onwards silver will not only be used as a commodity but also as an investment instrument.
Why did this start to happen? More than once we have talked about the huge amounts of dollars now being injected into the economy to stimulate it. Inflation is inevitable. Gold has always been the main saver from inflation, and it has risen rapidly in the last couple of years. But investors are now realising that they can’t put their money in just one instrument. One has to diversify risks. Bitcoin is rising because of this, and interesting things are also happening to the silver market.
Global silver ETF stocks have risen by 331 million ounces over the past year and now stand at 1.04 billion ounces, more than the annual application volume.
Another factor pushing up silver prices is a global production recovery. The Silver Institute is forecasting a 10% increase in industrial demand for physical silver in 2021. Electronics and new technologies such as the introduction of 5G networks should be the main drivers for this growth. The solar energy industry is also gaining momentum worldwide. Solar cells use a fair amount of silver, which is indispensable. Furthermore, we should not forget about electric cars, which continue to grow each year, and which also require a sufficient amount of silver for their production.
Many factors indicate that right now silver is expanding its importance as a trading instrument and is becoming a full-fledged investment asset, which, if skillfully used, can bring good profits.

What’s in store for us today?

13.45 ECB interest rate decision
14.30 Initial Jobless Claims in the US
14.30 ECB press conference

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