Peaking at 100 in the global economic recession of 1991, the ratio shot through that level this March, topping at 125 ounces of silver per 1 ounce of gold when the Coronavirus shutdowns of global economic activity saw the gray metal – which finds over half its end-demand from silver's industrial uses, against less than 1/10th for gold – plummet to the cheapest since 2009, down below $12 per ounce.
Silver prices have touched their highest level in six years, encouraged by low interest rates on other long-term assets as well as hopes that the industrial metal will be a winner in the “green recovery” promised by politicians. The price of the metal rose as much as 6 per cent to $21.17 an ounce on Tuesday afternoon — the highest in intraday trading since July 2014
In other forecasts, Citigroup was bullish on silver and palladium on a six-to-12 month view. Silver is expected to rise to $25 an ounce over that period on sustained investment demand and a recovery in global growth.
Strategists at Credit Suisse have noted a great silver performance lately and expect the white metal to look for the $26.22 resistance on a break above $21.14. What’s more, Gold/Silver ratio shows the latter is in line to extend its outperformance.
“Silver continues to push its way higher and there are seen clear similarities between price action now and that of gold last year. However, only above 19.65/21.14 would see a multi-year base confirmed, with next resistance then…
With recent trend reversals in the gold/silver ratio gaining in momentum, we could see SLV bulls in a strong position to outperform relative to many of their commodities counterparts. Since the middle of March 2020, the iShares Silver Trust has already experienced rallies that would have been thought of as impossible just a short time ago and this makes it a great time to learn how to trade CFDs in silver markets. Bullish investors have been decisive in response to updated assessments of the…
Peter Spina, president and chief executive officer at GoldSeek.com, referred to the forecast as a “strong promotion from Goldman Sachs,” following sideways trading for gold in the last couple of months.