If 2020 has taught investors anything, it is to expect the unexpected. Looking ahead to the new year, one bank thinks that silver could be the metal with the next big surprise.
Earlier this month, Saxo Bank released its much-coveted annual Outrageous Prediction report. For commodity markets, silver made the list. In a headline-grabbing prediction, the bank sees silver prices pushing to the all-time highs around $50 next year.
Saxo Bank’s renewed focus on silver comes as prices continue to outperform gold heading into the new year. March silver futures last traded at $25.76, up 0.88% on the day. silver prices have more than doubled since its March lows when prices fell to $12 an ounce due to the COVID-19 induced market crisis.
Ole Hansen, head of commodity strategy at the Danish bank, said that while he is bullish on silver for 2021, his forecast in the bank’s outlook is an extreme take on a significant trend that will drive silver prices higher.
Not only will silver’s monetary side will shine bright in 2021 in an environment where the U.S. dollar is driven lower by rising inflation pressure and low interest rates, but Hansen also said in his report that industrial demand and the green energy revolution will be an essential factor for silver.
Hansen said that turbocharging the rise in the silver price in 2021, even relative to gold, is the rapidly rising demand for silver in industrial applications, especially those driving the green transformation such as photovoltaic cells used in solar panel production.
So if you’re looking to invest in something, invest in silver.