• Home
  • |
  • Silver May Outperform Gold In 2021

May 26, 2021

Analysts at Germany’s Commerzbank have a bullish outlook for silver in 2021, according to their recently released report for precious metals. The bank’s senior analysts foresee silver outperforming gold as the global economy begins to recover from the COVID-19 pandemic, thus adding to the industrial demand for silver.

“The arguments for a further increase in the silver price are, in our opinion, overwhelming. The flood of cheap money is likely to lift not only gold but also silver, which also still has catchup potential compared to gold. Recovery of the economy should also boost industrial demand. We, therefore, expect silver to resume its upward trend,” Commerzbank analysts explained in this quote.

Commerzbank foresees the price of silver to increase to approximately $32 an ounce by Q4 2022.

“Industrial demand is expected to pick up in 2021, as the factors that weighed on the economy this year are likely to lose their influence. With the availability of effective vaccines and the progressing vaccination of the population, the risk of other lockdowns and supply problems should be significantly reduced. However, mine production is also expected to return to normal. Both effects are likely to cancel out each other. Thus, it will probably depend on the other demand components in which direction the pendulum swings in the market balance,” explained the bank’s commodity analysts.

Additionally, Commerzbank forecasts a bullish 2021 for gold as well, fueled by continuing monetary and fiscal policy to ease the repercussions of the Coronavirus pandemic on the global economy.

“We do not expect a change in the ultra-expansionary monetary and fiscal policy despite the upcoming vaccinations. Instead, governments and central banks will continue to be required to cushion the negative effects of anti-corona measures on the economy and society. If the necessary fiscal stimulus measures are not adopted in time due to resistance in the legislative process, pressure on central banks to step into the breach with further easing measures would increase,” explained Commerzbank analysts.

See also
3 Reasons Why 2022 Will Be Unforgettable

Commodities analysts at the bank expect that given the global pandemic’s economic repercussions will still be felt well into the new year, the price of gold will surge past $2,000 an ounce. Commerzbank anticipates that the precious metal could trade at around $2,300 by Q4 of 2021.

“Even if, as we expect, the corona pandemic can be brought largely under control in the second half of 2021 through sufficient immunization of the population, the enormously increased public debt levels caused by the corona policy and the inflated balance sheets of central banks will remain in place for a long time to come. The arguments in favor of gold have not changed for the central banks at all. The US dollar-denominated bonds held in the foreign exchange reserves hardly generate any positive nominal yields; in fact, the real interest rate on these bonds is almost entirely negative. The euro-denominated bonds even have a negative nominal yield. The price development of gold in this challenging year has also shown that gold offers great advantages as an integral part of foreign exchange reserves,” said the analysts.

Headquartered in Frankfurt, Commerzbank functions as a universal bank. As of 2019, it was the second-largest bank in Germany and had locations in over 50 countries around the globe.

For more on Silver and why it may just be the safest investment for 2021 click here

Highest Customer Ratings For Gold IRA Companies




Over 550+ total reviews

  • Highest overall average customer reviews
  • Largest investor resource team
  • The most trusted gold IRA company in the United States




Over 340+ total reviews

Related Posts

Causes & Effects of Stagflation | What To Do When It Reaches Financial Markets

Causes & Effects of Stagflation | What To Do When It Reaches Financial Markets

‘Unretirements’ Continue to Rise as More Workers Return to Work

‘Unretirements’ Continue to Rise as More Workers Return to Work

Royal Mint Bullion Review | Product Offerings

Royal Mint Bullion Review | Product Offerings

Fed Will Hike Rates Six More Times Before The End of 2022

Fed Will Hike Rates Six More Times Before The End of 2022
Photo is a selfie of Nathan Rosevear

Nathan Rosevear

Nathan offers insights and reviews around the highest rated precious metal IRA specialists. He is an investor in gold and silver industry.
His passion is helping Americans secure their finances through stable investing and provides such help by blogging valuable information for investors to make sound financial decisions.
Do you want some help figuring out your precious metals Investment? Feel free to give me a call at 604 603 7953.
Let me connect you with the best in the business based on your financial situation and help you save some time and maybe save you some hard earned money.
Nathan Rosevear is not a financial advisor. No financial advise will be given on phone calls. Investors are urged to seek professional advice when necessary.
Gold Investment review is paid to recommend some of the services listed on this website by referring you to the right companies. No additional cost is attributed to the investor.