GJ Town India

The digital boom in India,  to benefit online jewelry sales!   Looking ahead to 2021, we expect to see a healthy double-digit gain although that is set against 2020’s low level. The forecast upside for silver jewelry demand next year will likely be constrained by our expectation of yet higher silver prices. Furthermore, the anticipated economic recovery may be pushed further out as the pandemic could take longer to be meaningfully controlled in India. This in turn could, to some extent, weigh on consumer sentiment next year. The Longer Term Outlook: As mentioned earlier, silver jewelry sales are dominated by price-sensitive rural India and record high rupee prices are likely to weigh on demand in 2021. To offset the impact of this, jewelry fabricators and especially those in the largest segment that focuses on traditional jewelry (such as leg chains and toe rings) will likely choose to reduce purity or promote lighter pieces, thereby reducing silver demand in weight terms. ...

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 ye...