Silver is about to go Boom!, page-17

hot off the press

Earlier this month, Saxo Bank released its much-coveted annual Outrageous Prediction report. For commodity markets, silver made the list. In a headline-grabbing prediction, the bank sees silver prices pushing to the all-time highs around $50 next year.Saxo Bank’s renewed focus on silver comes as prices continue to outperform gold heading into the new year. March silver futures last traded at $25.76, up 0.88% on the day. silver prices have more than doubled since its March lows when prices fell to $12 an ounce due to the COVID-19 induced market crisis. The question is: can the silver price double again in 2021?Ole Hansen, head of commodity strategy at the Danish bank, said in a telephone interview with ***** News that while he is bullish on silver for 2021, his forecast in the bank’s outlook is an extreme take on a significant trend that will drive silver prices higher.Not only will silver’s monetary side will shine bright in 2021 in an environment where the U.S. dollar is driven lower by rising inflation pressure and low interest rates, but Hansen also said in his report that industrial demand and the green energy revolution will be an essential factor for silver.“Turbocharging the rise in the silver price in 2021, even relative to gold, is the rapidly rising demand for silver in industrial applications, especially those driving the green transformation such as photovoltaic cells used in solar panel production,” he said in his report. “In fact, a real silver supply crunch is in the cards in 2021, and it frustrates the full-throttle political support for solar energy investments under a Biden presidency, the European Green Deal, and China’s 2060 carbon-neutral goal, among other initiatives.”Hansen added that if investors want to see where silver is going, they should take a look at base metals like copper. The industrial metal continues to trade near an eight-year high as bullish sentiment grows in an environment of falling supply and increasing demand.By Neils Christensen