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The Swiss multinational investment bank and financial services company, UBS has declared that silver is likely to outdo gold’s price in this year 2021. And this is interesting news as the previous year experienced record-breaking prices of precious ‘safe-haven’ metals and secured the advantages of stock market volatility worldwide.
The year 2020 was indeed a glorious year for gold. Price of this precious metal reached a record-breaking level of nearly £1,520 in August. Due to the drastic impact of Covid-19 pandemic, pessimist thinking weighed down equities all over the world.
Thus, investors looked upon to gold increasingly as this ‘safe-haven’ precious metal typically appreciates during economic downturns. Simultaneously, increased gold prices acted as a boon for those looking to raise instant cash to meet their financial needs. People could use their unwanted or old gold jewellery to raise instant cash for gold either by selling or getting a pawn loan.
Gold has depreciated to some extent in the last few months. And according to Global Wealth Management strategists’ team of USB, gold is unlikely to repeat the staggering 2020 arc in 2021. On the contrary, silver is all set to shine and also, may outdo gold completely.
Economic condition is gradually improving in 2021. And as USB predicted, the industrial growth will influence prices of silver. What reinforces this prediction is that policymakers will provide a greater focus on renewable energy and decarbonisation ways in 2021.
Reports say that over 50% of silver utilised for industrial purposes is associated with electronics and solar panels. And these two are highly essential for progressing towards green technology.
According to the USB strategists, silver prices are likely to hit about £21.97 per ounce by the first quarter’s end and level off to nearly £19.77 per ounce by the end of this year. Silver price per ounce is currently at around £18.
However, gold will strive hard in the meantime to captivate substantial exchange-traded fund or ETF inflows for maintaining prices above £1,391. But USB anticipates that the value of the ‘safe-haven’ precious gold will be 2.5% lower than the present price level by the end of 2021, at nearly £1,318 per ounce.
Moreover, USB added that precious metal prices would remain high up in the first quarter of this year due to the continuing worst dollar performances and low-interest rates. But gold prices are expected to get weak in the second quarter of 2021 as the Bank of England and the Federal Reserve will start to narrow their quantitative relieving programmes.
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