Business & Investment

Silver and platinum overtake gold as the economy recovers

UBS Global Wealth Management strategists point out that silver and platinum will overtake gold in 2021. Economy And industrial demand will recover. The larger focus of policy makers on renewable energy and decarbonization in 2021 may also help silver. According to UBS, more than 50% of the silver used in industrial applications is linked to solar panels and electronics. Gold, on the other hand, struggles to attract an influx of trading funds sufficient to keep prices above $ 1,900.

2020 was one of the best yellow metal records. Investors hid themselves in safe assets amid geopolitical and economic uncertainty. Precious metals even reached a record $ 2,075 on August 7, 2020.

However, UBS Global Wealth Management strategists do not believe that gold will repeat its excellent performance in 2021. Instead, Swiss companies appreciate that other metals, including silver and platinum, will outpace gold next year.

According to UBS, industrial demand will support silver and platinum group metal prices as the economy recovers in 2021. Strategists believe that silver prices will reach $ 30 per ounce by the end of the first quarter and will eventually stabilize at $ 27 per ounce by the end of the year. Silver is currently trading at around $ 25 per ounce.

Gold prices are expected to fall in the second quarter of this year

Platinum will increase to $ 1,250 per ounce by the end of 2021. UBS predicted that the price would rise 16% above Tuesday’s price. The company also said palladium could reach $ 2,900 per ounce again in 2021. This is about 21% higher than the current level.

The larger focus of policy makers on renewable energy and decarbonization in 2021 may also help silver. According to UBS, more than 50% of the silver used in industrial applications is linked to solar panels and electronics.

Meanwhile, according to UBS, gold will have a hard time attracting enough ETF inflows to keep prices above $ 1,900. The company predicts that assets will reach the end of the year at $ 1,800 an ounce, 2.5% below current levels.

UBS added that the current weakness of the dollar and low real interest rates will keep prices of all precious metals high in the first quarter of 2021. However, as the macroeconomic environment improved, gold weakened in the second quarter, and the Federal Reserve shows that it will gradually lower prices.

UBS analysts advise platinum and palladium risk appetite investors. They also like precious metals for the opportunity to recover yields.

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Silver and platinum overtake gold as the economy recovers

https://www.financebrokerage.com/silver-and-platinum-will-overtake-gold-as-economy-recovers/ Silver and platinum overtake gold as the economy recovers

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