11 December 2019Reading time: 2 minutes

Investments in precious metals have traditionally been seen as a safe haven in times of economic uncertainty. When investing in precious metals, people quickly think of gold. However, it could also be interesting to look at the development of the silver price.

This year there was a clear link between the worldwide economic current affairs and the price development of precious metals such as silver. Over the period, starting early July until the start of September, the silver price rose with 29,39 percent. During the same period, the trade war between the United States and China flared up again and the fear of a new global recession also arose. Early July the gold price was already higher compared to the silver price and until early September the gold price gained 12,13 percent. Throughout 2019, the gold price rose with 17,45 percent.

Since the start of September, the silver price has somewhat decreased from 19,60 dollar per troy ounce to 16,92 dollar per troy ounce at this moment (December 2, 2019). This comes down to a decrease of 13,67 percent. In comparison to the beginning of this year, the silver price is still 17,51 percent higher.

Analysts from Citigroup expect that the gold price could reach an all-time high of 2.000 dollar per troy ounce within the next 24 months. According to these analysts, the silver price might follow the same trend in correlation to gold.

Analysts from Goldman Sachs expect that the gold price could rise with 10 percent in 2020, while Goldman Sachs’s outlook for silver for 2020 is an increase of 6,8 percent. The bank points at the already declining industrial demand for silver and expects that mining supplies could increase next year. It remains to be seen how the price for silver will develop in the following period.

Besides investing in silver as a precious metal, investors could also take a position in listed silver mines. Well known silver mining companies are amongst others Pan American Silver, First Majestic Silver and Fortuna Silver.

The future price development is subject to several political, industrial and sector specific as well as economic factors. Investors should consider these risks when making their investment decisions. Developments can be different at any time than investors anticipated on, which could result in capital losses.

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Vontobel products on silver are tradable at DEGIRO.

Important legal information:

This information does not constitute a financial analysis, but product advertisement. Thus it does not meet the legal requirements to ensure the impartiality of financial analysis and is not subject to trade prohibition before the publication of a financial analysis.

Fordetailed information, particularly regarding the structure and the risks associated with an investment in the derivative financial instruments, prospective investors should read the Base Prospectus, which is available together with the Final Terms and any supplement to the Base Prospectus in electronic form on the issuer’s website: Additionally, the Base Prospectus, anysupplements to the Base Prospectus and the Final Terms are available inprinted form, free of charge, at the registered office of the issuer: Vontobel Europe AG, Bockenheimer Landstrasse 24, 60323
Frankfurt am Main, Germany.

Investors should consider the applicable selling restrictions.
Companies of the Vontobel group may directly or indirectly pay commissions in varying amounts to third parties (e.g. brokers) in connection with the public offer and the distribution of the derivative financial instruments. Further information is available upon request from your distribution partner.


14/05/2021 03:53:09