Precious Metal News: Investing in silver is now attractive

• Investment Week: Silver attracts in an uncertain world
• The Silver Institute: Silver investment rises to its highest in over eight years
• Business Recorder: Reviving economy slows gold growth
• Yahoo!Finance: Has a new supercycle for commodities begun?

Investment Week: Silver attracts in an uncertain world

Due to its high volatility, silver, also known as the devil's metal, has outshone gold by growing 121% during the period from March to September 2020. And this year, the metal has already proven its reputation by first rising 18% and then immediately dropping 11%. Interest in silver has remained high due to the demand for green technology and a long lag - forecasts predict that silver will be the best-performing metal in 2021.
The increased demand for physical silver has also raised concerns about whether supply can meet the growing demand. Industry insiders are asking where all this new silver has come from. Ian Williams of Charteris Treasury Portfolio has highlighted the relatively small size of the silver market, while Metals Focus does not believe that demand will exceed supply just yet.
Opinions vary: some analysts believe that reduced demand from the industrial and jewelry sectors will not recover in the near future, while others hope that the need for safe-haven ownership and limited supply will support silver until industrial demand rises. FundCalibre's Juliet Schooling Latter does not believe that silver will be abandoned, as it offers "something real and tangible amid all the market manipulation." However, investors should keep in mind silver's volatility.
Read full article in English / 15.2.2021, James Baxter-Derrington

The Silver Institute: Silver investment rises to its highest in over eight years

Silver demand is expected to rise this year, thanks to the recovering global economy. Global investment is believed to reach its highest level in eight years at 1.025 billion ounces due to demand from the industrial sector and especially for physical silver (which is itself expected to reach its highest level in six years). However, a slower-than-expected recovery in pandemic conditions may limit investor commitment to silver. Overall, the Silver Institute is optimistic about silver's prospects for this year, basing its stance on three observations regarding silver prices, demand, and supply.
Last year, the average price of silver rose by 27% to €16.91. Looser monetary policy and falling interest rates have encouraged investors to buy silver and other safe-haven assets. The year 2021 started with a surge in demand from retail investors, pushing silver to its highest level in eight years at €25.63, while the gold-silver ratio fell to 62. Silver's prospects appear very bright: the massive demand for physical silver has caused product shortages (which, however, is offset by weak demand in India).
The latest global forecasts for physical demand are at 1.025 billion ounces, which would cover all losses from 2020. Demand from industries, physical uses, jewelry, and tableware is expected to grow significantly and boost revenues. In particular, industrial demand is projected to rise to a four-year high of 510 Moz. Jewelry demand is expected to recover to around 174 Moz, although it will remain below pre-COVID-19 levels.
Mine production is expected to recover from 2020 levels and grow to 866 Moz. Most mines affected by the pandemic have returned to operation, and growth is also supported by silver-focused mines and new projects in Mexico and Australia. According to forecasts, the surplus of physical silver in 2021 will be the lowest since the deficit in 2015. full article in English / 10.2.2021, The Silver Institute

Business Recorder: Reviving economy slows gold growth

Analysts have lowered their expectations for gold: according to the latest forecasts, the average price of gold will be €1,573 in the January-March quarter, €1,588 for the entire year, and €1,572 for 2022, which is a decrease compared to a similar survey conducted three months ago. Independent analyst Ross Norman believes that gold will perform moderately well, but still positively. The metal has benefited from central bank actions and the weakness of financial markets, but the recovery of the global economy may reduce its attractiveness due to rising bond yields. Silver's development followed gold last year, rising to €24.60/oz during the summer and then falling to €21. This year, prices are expected to stabilize at an average of €21.33 and €20.87 in 2022. Read full article in English / 14.2.2021, Reuters

Yahoo!Finance: Has a new supercycle for commodities begun?

JPMorgan analysts believe that a new commodity upcycle and oil growth cycle have begun. This long-term rise is driven by factors such as post-pandemic reconstruction, anti-inflation measures, and unexpectedly, the climate crisis, which may restrict oil supply and increase demand for metals used in the green industry.
The latest commodity supercycle peaked in 2008 after 12 years of growth. At that time, growth was driven by the expansion of the Chinese economy, while the current cycle benefits from recovery from the pandemic, loose monetary policy, a weak dollar, strong inflation, and aggressive environmental actions.
Commodity prices have risen to a six-year high: corn and soybeans benefit from Chinese demand, copper has reached an eight-year high, and oil has strongly recovered from global oversupply.
Read full article in English / 11.2.2021, Gerson Freitas Jr. 

This is Jalonomi's weekly review of interesting precious metal news from various sources around the world. Our goal is to provide the reader with a concise and quick-to-read overview of the news on a weekly basis. We particularly focus on news related to investment gold.