2021 has so far been a good year for silver. The metal witnessed an eight-year high due to widespread enthusiasm among investors, economic recovery, and precious metals’ industrial applications. Silver was priced over US$27 per ounce in the first month of 2021.
According to an article by Forbes, analysts believe that silver is a better investment option in the medium to long term than gold. If you are looking to buy silver bullion and coins in Australia, you can know more here.
How Did Silver Perform Last Year?
Silver started 2020 at $18 per ounce and made it to $19 per ounce before the pandemic hit the world. With lockdowns initiated across the globe and people confined to their homes, the demand for precious metal significantly decreased, with silver reaching $11.74 per ounce in March, its lowest in 11 years.
The economy is slowly recovering, manufacturing operations opening up, increasing demand among investors for precious metals helped silver regain its place in the market. From July to September, the silver price was in the range of $22 to $29 per ounce.
What Are The Factors Driving Demand For Silver?
Having silver as a part of your investment portfolio could help you cushion the blow in times of economic turmoil. Industrial manufacturing is one of the critical application areas of silver. The precious metal is one of the essential components in solar panels and batteries. The global solar energy market is forecasted to reach $223.3 billion by 2026, ensuring silver stays in demand.
With vaccination drives being carried across the world, people are slowly but surely venturing outside, adjusting to the new normal. The jewellery market is also expected to pick up from the slump of 2020. Coins and bars are another segments that are seeing increasing demand among buyers. You can buy these coins and bars in various sizes and weights.
Silver Metal Prices: What Does The Future Hold?
The global economy is slowly but recovering from the pandemic that has laid siege over the world. As a strategy to tackle economic volatility, investors continue to invest in precious metals like silver as they are considered a much safer option compared to other products. With manufacturing operations going ahead full steam, the demand for silver will also continue to grow.
Analysts believe silver will hit the high price of $30 per ounce and level off to $27 per ounce by the end of the year. The price will still be a 33% increase compared to the average price of silver last year. The growing demand for silver will help it outshine even gold in 2021.
The consensus among the industry experts is that silver is a relatively safer investment option considering the economy in the post COVID era. It is not a risk-free investment product, but its varied uses in personal and industrial applications make it a sound choice in the long term. The overall sentiment on this precious metal is positive. If you are looking to expand your portfolio, then do consider buying silver bullions and coins.