5 Reasons Silver Should Go Bullish In 2021

February 22, 2021

silver 2021In February, Silver has been in spotlight due to historic levels of volatility caused by coordinated attention from Reddit group Wallstreetbets. 

That sent Silver price up to $30. Since then prices felt down.

However, I believe there are several reasons why price of Silver should go up well above $30 level.

Reason #1: Low supplies of physical Silver

Supplies of this precious metals are very thin which in near to mid term could trigger a massive bull run.

Reason #2: New support formed

After peaking at $30 silver price retreated down to $26 where the new support level was formed. This gives us a nice possibility of uptrend.

Reason #3: Inflation 

Silver can highly benefit from inflation. As central banks worldwide plan to print more money due to Covid-19 crisis, Silver could be a prime beneficiary of that.

Reason #4: Gold/Silver ratio

Gold/Silver ratio is a popular metric to watch. When the ratio is below 77 it indicates a bull trend for Silver. Currently the metric is even below 66.

Reason #5: Industrial demand

Silver is also an industrial metal so it can benefit from increasing demand.
Later this year, with help of vaccination agains Covid-19 we could see a boom in industrial demand and Silver prices.

How high can the Silver price get in 2021? 

Well, there are various forecasts for year 2021. From $30 up to $100 in some extreme scenarios.

Author: Marian Hlinka (alias FreedomFund) is a Popular Investor at eToro. If you like my performance, click the banner and copy my trades.