Let’s look at the gains of gold against the gains of some of the other metals. The table below shows the price growth since the start of the year, from best to worst.
Silver has outperformed every other metal on this list, far ahead of other industrial metals: palladium, copper, platinum.
Silver’s dominance is even more evident in the chart below, which shows percentage gains from their 2020 lows, which occurred around the third week of March for all of these metals.
Gold looks relatively less impressive here as it ranks second to last in terms of recovery from its March lows.
Despite silver outperforming gold this year, silver and gold miners have experienced relatively comparable levels of growth, with Global X Silver Miners ETF (SIL) up 50% since start of the year, while the VanEck Vectors Gold Miners ETF (GDX) rose 48% during the same period.
It’s important to note that unlike gold, silver has yet to hit all-time highs. In fact, it’s still almost 100%. Analysts have called for even higher silver prices to come.
Bart Melek told Kitco News in an interview that better days are ahead for white metal.
“I love money and have loved it for a while, but I think for now we are consolidating. But money can still have good days ahead, ”he said.
He added that physical demand has been a major driving force behind the money.
“A lot of the driving force behind this is the massive amount of physical investment that we’re seeing,” he said. ” [silver-backed exchange-traded products] alone, they’re about 250 million ounces more than they were at the start of the year.
For Melek, $ 50 an ounce, the previous all-time high, is a possibility.
« [$50] would be a number. And in my opinion, probably not sustainable for an indefinite period of time, but certainly in this environment it is possible, ”he said. “If we see if this pressure continues, a price like we’ve seen at previous highs is very possible. “
Keith Neumeyer, CEO of First Majestic Silver, also commented on the tension in the silver market. Speaking to Kitco News last week, he said that as demand for silver increased, supply had not been able to catch up due to production hampered in the wake of COVID -19.
“I know the tightness of the market. It will only get worse as we go green. When I started this company, we didn’t have solar panels and we didn’t have electric cars to a high degree. Now solar panels are the biggest money consumer in space. They consume over 10% of the world’s metal supply – an industry that did not exist 20 years ago, ”said Neumeyer.
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