First it has been gold hitting record highs and now Nitesh Shah, Director, Research WisdomTree comments that silver is on the same path.
Shah says: “Silver has followed gold’s coattails higher, surpassing forecasts and snapping out of a pessimistic period that had besieged the metal in the first five months of 2019.
“In the current climate we are revising our Q2 2020 silver price forecast higher to USD17.05/oz. However, silver could peak much higher at USD19.90/oz at the end of Q3 2019. So, we view a strong tactical opportunity in silver in the near term.
“Our forecast incorporates silver’s 80 per cent correlation to gold and, outside of this, looks at its role as an industrial metal. Silver faces several headwinds in its manufacturing applications if trade wars hurt demand for goods, which explains why silver could lose some of the short-term gains by the end of the forecast period.”