More and more analysts are coming out in favor of a bullish silver price trend. Seeing the price hit $20 and even go well beyond this level is not impossible. In fact,this may happen a lot sooner than people might think.
Silver is Turning Bullish
The year 2020 has been filled with a lot of prominent momentum for precious metals. Both gold and silver have noted very strong gains, despite suffering from volatility in March of this year. Unlike other markets, both of these commodities bounced back very strongly, and simply resumed their uptrend as if nothing happened.
Contributing to this ongoing success are fears over a second COVID-19 infection wave. Numerous countries are seeing a hefty spike after weeks of maintaining a status quo. This is worrisome for a lot of different reasons. Not only does it show the virus isn’t done rampaging, but it will also trigger a domino effect in the financial industry.
Just yesterday, 212,000 new COVID-19 infections were reported globally. It is the highest single-day increase since this pandemic started taking shape. Most of the cases were reported in the US, India and Brazil. Notable increases also occurred in Italy, Spain, and a handful of other countries. Keeping those regions in check will be the next order of business.
Despite that bleak outlook, the stock markets are bouncing back nicely. Gains of over 5% are not uncommon in recent weeks. Primarily Asia is noting a strong uptrend, albeit it remains to be seen how things evolve.
Silver-Gold Ratio Evolves Nicely
Keeping all of this information in mind, it is all the more likely that precious metals will continue their uptrend. Safe haven assets are in high demand during times of financial uncertainty. Silver has a leg up over gold, as it has a much higher demand from industrial uses. That alone can easily elevate the silver price to $19 and higher in the weeks to come.
Following recent gains, the silver-gold ratio dropped to 97.3 again. This is the lowest point in the last few weeks, which is always crucial to keep an eye on. Considering how this ratio peaked at 127 earlier this year, the recovery of silver has been nothing short of amazing.
The big question is where things will go from here. More and more people expect the silver price to surpass $20 this year.
Judging by the popularity and gains noted by silver-backed ETPs, it is evident that something will have to happen. Net demand to buy physical silver from trading platforms is also on the rise.
Investing in precious metals, such as silver and gold, may be the best decision investors can make in 2020.