Gold was gaining attention as prices set new records earlier this week, but through a percentage gain, the yellow metal is by no means the winner this year.
Let’s look at the gains of gold versus the gains of some of the other metals. The table below shows the price growth, year to date, best ranked for the worst.
Silver surpassed all the other metals in this list and far surpassed the other industrial metals: palladium, copper, platinum.
Silver’s dominance is more evident from the table below, which shows a percentage gain from their 2020 low levels, which occurred around the third week of March for all these metals.
Gold is a relatively less impressive appearance here, ranking second to last in terms of its recovery from its March low levels.
Despite this year’s best silver-to-gold yield, silver and gold miners have seen relatively comparable growth levels, with the Global X Silver Miners ETF (SIL) up 50%. year to date, while the VanEck Vectors Gold Miners ETF (GDX) is up 48% over the same period.
It is important to note that unlike gold, silver has not yet reached all-time high levels. In fact, it’s still almost 100% away. Analysts have called for higher silver prices still ahead of us.
Bart Melek, told Kitco News in an interview that better days are in front of white metal.
“I like silver and I’ve liked it for a long time, although, I think for now, we’re consolidating. But silver may still have some better days ahead,” he said.
He added that physical demand was a major driver behind silver.
“Most of the force behind this is the massive amount of physical investment we’re seeing,” he said. “[silver-backed exchange-traded products] alone they are about 250 million ounces higher than they were at the beginning of the year. ”
For Melek, $ 50 an ounce, the highest time ever, is a possibility.
“[$50] it would be quite a number. And in my opinion, it’s probably not sustainable in the long run, but certainly in this environment, that’s possible, ”he said.“ If we see if this pressure continues, price as we’ve seen in previous highs it is very possible. ”
Keith Neumeyer, CEO of First Majestic Silver, also commented on tightening the silver market. Speaking to Kitco News last week, he said that as demand for silver rises, supply could not keep up due to disrupted production as a result of COVID-19.
“I know the tightening of the market. It’s only going to get worse as we go green. When I put this company together, we didn’t have solar panels and we didn’t have electric cars to any great degree. Now solar panels are the largest consumer of silver in space. They consume more than 10% of the world’s metal supply – one industry that did not exist 20 years ago, “said Neumeyer.
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