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Silver is the only precious metal likely to achieve persistent deficit over 2021-22 - Metals Focus

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(Kitco News) - Metals Focus, one of the world's leading precious metals consultancies, expects silver to benefit from an improving gold price in early 2022.

This was reported in Metals Focus' recent release of "Precious Metals Investment Focus 2021/2022", its flagship annual report on investment in gold, silver, platinum and palladium.

"Silver's innate high volatility means that it may well outperform gold early next year," said Neil Meader, Director of Gold and Silver at Metals Focus.

However, after that, prices may weaken, when there will be clearer guidance from the Fed on the timing of the first post-COVID rate hike, the consultancy added.

Metals Focus believes that silver's more favourable fundamentals could offer some price support next year.


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"Among the four precious metals, silver is the only one likely to achieve a persistent deficit over 2021-22, marking an end to consecutive surpluses over 2014-20. This turnaround is partly due to strong industrial fabrication," the consultancy noted.

Metals Focus pointed out that on top of a bounce back from COVID damage, there are structural forces at work, including vehicle electrification, the proliferation of 5G technologies and governments' commitment to green infrastructure investment.

"Healthy bargain hunting on price dips by retail investors and the post-pandemic recovery in Indian jewelry and silverware demand should also provide useful support," the consultancy added.

Importantly, Metals Focus said it expects that silver price to mirror gold in 2022, up by 2% to an average of $25.75, but softening in H2.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.