April Is the Cruelest Month – But Not for Precious Metals May 6, 2021
After a challenging first quarter, precious metals rebounded in April, writes Sprott’s senior portfolio manager and market strategist Paul Wong, in the firm’s monthly metals commentary.
Gold finished the month at $1,769.13/oz, a 3.6% month-on-month increase. Other metals rose even higher: silver gained 6.14%, platinum 1.34%, and palladium an impressive 11.95%.
Mining equities also saw growth, with gold miners adding 6.16% in April. In fact, gold equities have rallied back up to their 200-day moving average, after being oversold in March.
Over the past twelve months, gold has climbed 4.9%, silver has gained 73.13%, palladium went up 49.25%, and platinum added 54.85%.
April 30, 2021
Hedge funds remain cautious on gold, even as they grow increasingly bullish on silver, show data from from the Commodity Futures Trading Commission.
As reported by Kitco, the latest Commitments of Traders report revealed that some hedge funds and money managers kicked the tires on gold, drawn in by declines in U.S. 10-year bond yields. However, this renewed speculation wasn’t enough to drive gold prices above $1,800/oz.
Nevertheless, many market analysts remain bullish about gold’s long-term prospects, and some believe it is only a matter of time before the critical $1,800/oz resistance point is breached. Doing so won’t come without some volatility, though.
April 27, 2021
Silver prices are poised to surge 30% this year as global demand for the metal increases, according to a new report from The Silver Institute.
Demand suffered last year, but a late price surge put silver at $20.55/oz, a 27% increase over 2019’s annual average and the highest silver has been priced since 2013. The report’s authors project an average annual silver price this year of $27.30/oz, though the metal could potentially go even higher, up to $32/oz.
In 2020, silver benefited from its status as a safe haven for investors worried about the pandemic’s effects on the market. But with the economy starting to gear up, it’s silver’s utility as an industrial metal that has provided support for its rising price.
April 26, 2021
Like gold, silver’s value skyrocketed in 2020 due to the COVID-19 pandemic, driven higher by falling interest rates and a shrinking global economy. But expectations have changed in 2021, said Sprott Asset Management senior portfolio manager Maria Smirnova in a recent interview.
On the latest episode of Sprott Gold Talk Radio, host Ed Coyne interviewed Smirnova to discuss silver and its prospects.
Enthusiasm for gold and silver has dampened in 2021, as the dollar has strengthened, economic optimism has improved, and interest rates have begun to rise, said Smirnova. But she added that “we do see this as transitory.”
As Smirnova pointed out, the recent $1.9 trillion stimulus package is still coursing through the economy.
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