(Kitco Information) –
Silver costs are seeing a surge in momentum, and one analysis agency expects costs will proceed to rise by 2020.
Silver costs are rallying 4% Thursday because the market continues to recuperate from final month’s huge sell-off that noticed costs drop to an 11-year low. Might silver futures final traded at $14.55 an oz.
Analysts with the GFMS staff at Refinitiv mentioned of their 2019 assessment and 2020 outlook that they count on silver costs to common $15.75 an oz this yr, up sharply from present costs however down 3% from the typical value from 2019.
“We count on costs to recuperate from present lows, pushed by discount looking, earlier than transferring larger later within the yr as soon as the market hysteria calms down and safe-haven demand kicks in,” mentioned Cameron Alexander, supervisor of precious-metals analysis at Refinitiv.
Seeking to 2020, Refinitiv analysts mentioned that industrial demand for silver is anticipated to endure as the worldwide economic system has floor to a halt as a results of the COVID-19 pandemic. Nations around the globe have instituted lockdown measures, forcing folks to remain at residence to gradual the unfold of the virus, which has contaminated almost 1 million folks and killed roughly 50,000.
Nevertheless, funding demand will proceed to dominate the market, the analysis agency added.
“Industrial fabrication is ready to take successful this yr, with losses anticipated throughout all the foremost sectors, with the fast unfold of COVID-19 disrupting provide chains globally and threatening to tug the worldwide economic system into downturn,” Alexander mentioned.
“We count on constructive inflows into silver ETPs [exchange-traded products] to proceed this yr. Demand for bars and cash is forecast to rebound by 24%, partly pushed by a shopping for frenzy throughout all the foremost markets in Q1 because the silver value plunged to its lowest in greater than 10 years, in addition to a renewed investor curiosity in secure havens later within the yr as soon as international monetary markets stabilize,” he added.
Taking a look at bodily silver demand, the U.S. Mint noticed unprecedented demand for its American Eagle silver cash final month, promoting almost 5.5 million one-ounce bullion cash. Gross sales are up virtually 750% from the earlier month.
U.S. bullion coin demand final month is up 550% from gross sales reported in March 2019.
Renewed curiosity in silver comes after a comparatively dismal 2019. The analysts mentioned that complete bodily demand for silver dropped by 2% final yr to 1.035 billion ounces. The decline was led by weak industrial demand and poor international jewellery gross sales.
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