Silver price starts 2021 strong; can it hit $40, David Morgan's target?
The economy will not recover at a rapid pace in 2021, said David Morgan of The Morgan Report, leading investors to flock to safe haven assets.
“I don’t think we’re going to see much of a recovery next year. We could, but I don’t think we’re going to see the risk-on type of situation, I think a lot of people are going to be looking for safe havens,” Morgan said.
However, certain sectors that require silver will not go out of business any time soon, Morgan noted.
“Next year you’re going to have a push for silver panels more than ever,” he said. “The demand on the industrial side will be equal to or greater than it was this year regardless of economic conditions. There are certain things about silver that there is no replacement for.”
Silver has regained its safe haven status, and this should lead to its outperformance relative to other metals in 2021, Morgan said.
“It’s regained its safe haven status this year and the amount of silver that has been purchased by the funds were $300 million ounces of physical silver. This is totally unheard of. We’ve never had that kind of investment demand in silver in decades,” he said.
Morgan’s target for the silver price in 2021 is $40 an ounce.