New Delhi, Feb 23 (SocialNews.XYZ) Physical investment of silver is expected to achieve a six-year high in 2021 at 257 million ounces, as investors continue to add silver to their holdings.
As per Motilal Oswal Financial Services, silver has been outperforming gold over the last few months and is on the verge of a technical breakout.
Silver prices have had a decent rally in 2020, and for this year the trend has been bullish amid the growing attraction towards riskier assets, rising demand for industrial use along with safe haven appeal.
Some volatility has been witnessed along with swing in the dollar which is at 3 year lows, while President Biden's proposal for additional stimulus of $1.9 trillion is increasing optimism.
The massive stimulus has raised hopes for a speedy economic recovery, but at the cost of rising inflation. Rising real yields and inflation concerns made equity valuations look more stretched in comparison, the report said.
This is prompting investors to move towards safe-haven assets like gold and silver, which is widely viewed as a hedge against inflation.
The Fed and other leading central banks have pinned their hopes on ultra-low interest rates to get the economy out of the economic fallout from the Covid-19 pandemic. After the Reddit buzz, there is a lot of demand for the white metal in the physical market against the limited supply scenario.
The physical investment is expected to achieve six-year high in 2021 of 257 million ounces, as investors continue to add silver to their holdings, the report said.
Silver institute expects Global silver demand to rise 11 per cent in 2021, reaching 1.025 billion ounces, while mining production is expected to increase around 866 million ounces.
Silver's application in the solar panels, automotive industry, 5G networks and others is catching a lot of eyes creating a strong picture for the metal.
Large precious metals speculators continue to increase their bullish net positions in the silver futures markets. The report said prices are on the verge of a breakout Rs 71,500-71,700 zone above which the price could conservatively target Rs 78,000 followed by Rs 80,500 with stops below Rs 67,000.
Source: IANS
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