Citibank Predict a 60% Rise for Silver in 2021

Positive Forecasts for Silver

Citibank, which is well known for its resources research, has forecasted the 60% rally with further possibilities of it rising to $50 (£38.19) or even $100 (£76.13) per ounce.

The 12-month forecast sees a strong recovery in industrial consumption across the new year, while governments efforts to further devalue currencies, and additional uncertainty surrounding  Covid-19, drives investors towards precious metals.

If the bank’s bullish view on silver doesn’t come to fruition, the bear case sees a relatively modest drop to roughly $20 (£15.28).

Citi have also made the case that a Biden win in the US 2020 election could bear more of a positive effect on silver than gold; especially with the Democrats’ drive for a “Green New Deal” which would see a larger focus on green energy. Silver, of course, plays a large role in the use of solar panels among its other industrial uses.

Concerns Over Volatility

According to Citi, the outlook for silver is a “mini re-run of the 2009-to-2011 bull market”, but added that silver “is not for the faint-hearted".

Investors may still be wary of such optimism after the 1980 attempt to corner the silver market by the Hunt brothers. The scam ended after the price fell by 50% in 4 days leading to panic in other markets, and the Hunt brothers were charged with price manipulation and fined millions of dollars eventually leading to their bankruptcy.

Recent Performance

Our look at the past 6-month performance of silver is certainly interesting to look at when comparing with other metals.

Click the link to see our live silver price chart.

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Live Silver Price Chart