Silver to outperform gold prices in 2021: ABNAmro
Gold is still a crowded trade! Georgette Boele, Senior Precious Metals Strategist of ABNAmro said, “Silver to slightly outperform gold prices in 2021!” Earlier ABNAmro released our Gold outlook. The stars are aligned for gold prices but some cracks are appearing. Still they expect prices to rise in 2021 on lower US real yields and a weaker dollar. The caveat is that long gold is still a crowded trade. For the same reasons ABNAmro also expect silver prices to rise. Silver tends to profit from higher gold prices as they are both bought as an investment, as a safe haven (gold more than silver), and for jewellery. Silver has another interesting dynamic. Silver prices tend to outperform gold prices if investors are more optimistic about global growth and trade, because silver has a substantial industrial demand component. Indeed silver prices strongly outperformed gold prices in 2020 for this reason and because silver was relatively cheap. This wiped out four years of gold outperf