In January and February, silver was all over the news (and even here too 😉) thanks in part to the #silversqueeze and WallStreetBets.
But if the crowds of distracted investors are now looking for the next big thing, silver could already be getting ready for a rebound.
So let’s take a quick look at FOUR positive signs for a silver rebound:
1. Growing industrial demand 🏭
First, as you might know (maybe from our SPOTLIGHT #71), industrial demand for silver is set to be growing, with silver being a crucial component in:
- Electric vehicle batteries and battery management systems: EVs are expected to make up more than 30% of total car sales by 2030.
- Solar panels: even with the world experiencing general economic slowdowns, this market has grown by 43% in 2020. And the U.S. is looking to install 500 million additional solar panels over the next five years.
2. Outperforming gold 📈
After experiencing historical lows in the first part of 2020, silver has managed to outperform gold in the rally and consolidation period that occurred in the following months and continues today to show relative strength.
3. Upgraded economic forecasts 🍾
The Federal Reserve has revised its most recent forecast for average growth from 4.2% to 6.5% for 2021, which is a sign industrial demand for silver could go up.
4. Signs of market volatility 🐻
And with some markets recently showing signs of volatility, investors could start looking again for hedging assets to protect from this volatile future.