Gold, Silver, and Bronze, we all know the order! Since the Olympic games of 1904, this order has stuck, but in financial markets, things are a bit switched up. In fact, in a recent online survey asking over 1,000 participants what they thought the most valuable precious metal will be in 2021, Silver ranked first, Copper second, and Gold third. The reason behind this is that Silver prices have made a greater recovery since March lows compared to gold and Copper is expecting to see an uptake in demand upon the re-opening of the economy with only limited supply.
Let’s take a look at the future of these metals, but first, let’s take a little trip back in time. When looking back, 2020 was an insane year, to say the least, and for many stocks, it was a mixed bag. For the commodities of Bullion, however, 2020 was stellar, with gold rising 25.12% and the silver 47.82%. With all this growth it’s hard to see how much higher the ceiling is. Despite this many analysts are still bullish on bullion with economists citing an uptick in inflation as a key market factor that could play a major role in 2021.
This is important because higher levels of inflation tend to push bullion prices higher, moreover, with the high levels of fiscal and monetary stimulus from the coronavirus, many investors are sticking with gold and silver for the long haul. But this isn’t all affecting these commodities, and as with many things, politics does play a role. In fact, some have built a more bearish case with this in mind because the Biden presidency may take longer to approve mining permits and place restrictions on miners emitting large amounts of greenhouse gases. Some argue back that this affects coal and fossil fuels much more than the precious metal industry and is not a major concern.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.