Silver buyers ahead?
Silver has been dragged down to start the year with gold as the taper talk had some gold bulls hit the panic button. However, silver etf's have hit record levels according to the Bloomberg tally.
This suggests that the reflation trade is encouraging buyers. Furthermore, there is rising industrial demand for silver's use in solar panels and silver is seasonally strong this time of the year.
So, silver did very well in 2020 with a strong hard rally in the back draft created by gold. In 2009 silver had a strong performance alongside gold, but followed up with a 80% rise in 2010. The question is can that pattern repeat itself this year? As long as the reflection trade remains in play, aided by a weaker USD and low rates that scenario would favour silver buyers. However, any talk of tapering or normalisation should bring silver sellers out
