Onn the other hand, a fall in Silver prices is considered unlikely, while a rise towards $32 an ounce by the end of the year is expected with risks clearly on the upside. Silver should be supported by a gradual recovery in the global economy, the proliferation of green economy models in major countries and the same monetary factors that support gold.
Stimulus measures to be strongly geared towards sustainable activities are expected, offering medium-term support for silver, which is an essential component of solar panels. Moreover, with the gold-silver price ratio still above its 30-year average, silver remains undervalued relative to the yellow metal.
Platinum was one of the worst performing precious and industrial metals in 2020, failing to match the rally of, for example, gold, silver and palladium. Platinum’s disappointing performance can be attributed to a slump in demand for jewellery, a slowdown in the automotive industry and a significant supply surplus. These factors, together with the abandonment of diesel engines, make a significant acceleration in 2021 unlikely.
In terms of automotive demand, the secular transition away from diesel is likely to remain a drag on the platinum price, as around 40% of demand has been for this type of car in recent years. In the long term, the hope for hydrogen-powered cell technology is positive, but in the short term it is unlikely to fill the gap caused by weak car demand.