We’re off to a great start in 2021, but we won’t let that sway our previous forecast for 2021, made in the second week of December. We may be too conservative, but here was our forecast back then:
For Gold, I predict a six-month goal of $2,200 and a peak price of $2,350 in the second half of 2021.
Silver often acts like “gold on steroids” during a bull market, so I think it can exceed $30 this year, with a 30% gain to $32 per ounce, based on rising industrial use in solar panels plus rising investment demand.
Just as a reminder of what the mainstream banks have predicted, analysts at Citibank see gold rising to $2,200 in the first quarter – and then rising to $2,400 within six to 12 months.
Turning to silver,quoted three analysts who predicted prices ranging from $30 to $40 an ounce in 2021.
Among the three analysts quoted by Barron’s, the lowest figure came from Goldman Sachs analyst Mikhail Sprogis, who focused on silver’s role in solar panels, which should expand greatly during the Biden administration. Solar applications account for 18% of silver’s industrial demand and 10% of total silver demand, according to Sprogis, who set a $30 price target for silver in 2021. The median price forecast came from CIBC (Canadian Imperial Bank of Commerce), which predicted silver will reach $32 in 2021, citing the Fed’s low interest rate policies and rising federal debt supporting higher silver prices.
Citigroup was the most bullish bank, maintaining a $40 price target on silver over the next 12 months, due to investors seeking safety, plus industrial demand, particularly the robust demand in China. Citi also sees 12% growth in silver demand in traditional consumer segments like silverware and jewelry in 2021.
When there is uncertainty about the future, like now, that is the time to increase your precious metals holdings for another year of market-beating results and protection of your other portfolio assets. You can also place your precious metals into a tax-deferred IRA plan. Call your representative for more details. We make setting up a precious metals IRA easy!