February 22, 2021
In 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.