Demand for Silver Outpaces Gold as Precious Metals Production Ramps up Again

Share on twitter
Share on facebook
Share on linkedin
Share on whatsapp
Share on telegram
The trends depicted by both gold and silver are similar in many ways. Volatility during the first four months of the year has been overcome successfully

The precious metals markets always tend to evolve in very interesting and somewhat mysterious ways. According to Commerzbank analyst Daniel Bierserhann, the demand for silver currently outpaces gold by quite a margin.

Silver is Gaining Traction

For some time now, it has appeared as if the year 2020 would be a good year for both gold and silver. Albeit most investors flock to gold first and foremost, silver could be a dark horse in this race. The metal has proven to be incredibly resilient during these uncertain times, and a push to $20 or higher isn’t out of the question by any means.

In fact, the current market demand for silver is taking a lot of people by surprise. Even Commerzbank’s Daniel Briesemann didn’t expect silver to become so popular all of a sudden. One has to keep in mind that the gold-silver ratio hit a very high ratio in favor of the world’s leading precious metal. To some, this was merely a footnote, whereas others may have seen it as a solid investment option.

By reclaiming some of the momentum against gold, there is a lot of market enthusiasm. Currently, the gold-silver ratio dipped below 100 again, coming from over 125 not that long ago. That big dip has now been bought up, thus it will be rather interesting to see what happens next to both precious metals. 

Gold and Silver Keep Moving up

When looking at the bigger market picture, the trends depicted by both gold and silver are similar in many ways. Volatility during the first four months of the year has been overcome successfully, and regular gains are noted ever since. Silver is well on its way to hit $18 again if this trend keeps up.

For gold, the push to above $1,750 is still in place today. Nothing comes easy in the financial industry, but gold has maintained its price level without too much effort. As inflows of physical precious metals begin to resume, things will become a lot clearer in terms of market demand and overall holdings.

Speaking of which, Briesemann points out how Bloomberg’s silver ETFs paint a very surprising picture. Silver inflows and holdings have increased significantly, allowing it to outpace gold in this particular regard. Assuming this trend keeps up, Q2 2020 will certainly yield some unexpected market shifts when everything is said and done.

1 thought on “Demand for Silver Outpaces Gold as Precious Metals Production Ramps up Again”

  1. Pingback: Pandora A/S Banks big on Recycled Gold and Silver for Future Jewelry Production - Vaultoro buy gold with bitcoin

Leave a Comment

Your email address will not be published. Required fields are marked *

our free Newsletter will be the best money you never spent.
  • Packed full of insider leaks, news, and articles from the biggest in the crypto and commodities industries.
  • Buy the rumor, sell the news? The Vaultoro emails highlight credible rumours before they become news.
  • You can unsubscribe at any time but we don’t think you will want to.
Vaultoro buy and sell gold bullion with bitcoin and crypto
Time for a new experience

Please choose