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

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
Vaultoro Gold Silver Volatility

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.

Demand for Silver Outpaces Gold as Precious Metals Production Ramps up Again 1

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.

Demand for Silver Outpaces Gold as Precious Metals Production Ramps up Again 2

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.

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