After golden year for precious metals, silver set to shine in 2021

File picture

After a spectacular year, precious metals are set for further gains in 2021, with silver-tipped to outperform, but analysts are growing more cautious about the prospects for gold as the global economy recovers from the impact of the coronavirus.

The pandemic triggered stockpiling by investors looking to protect their wealth.

This, alongside supply deficits, pushed gold and palladium prices up by more than 20 per cent this year, while silver rose 47 per cent and platinum 10 per cent.

“We are going to see new record highs for gold and palladium (in 2021),” said Philip Newman at consultants Metals Focus.

“But silver will see the chunkiest gains,” he said.

Traditionally seen as a safe place to store money, gold began to rise as economic growth slowed in 2019, but the pandemic accelerated the rally and in August prices hit a record high of $2,072.50.

While demand for physical gold was hammered as the virus forced shutdowns, investment demand surged as reflected in the holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, which recorded its biggest yearly gain since 2009 at about 30 per cent.

More from Business

Coming Up on Dubai Eye

  • The Business Breakfast

    6:00am - 11:00am

    The Business Breakfast is the day’s must listen for the UAE’s business leaders, and those who aspire to be.

  • Lunch with Lloyd

    11:00am - 2:00pm

    No one knows entertainment better than veteran Dubai broadcaster Mark Lloyd.

BUSINESS BREAKFAST LATEST

On Dubai Eye

  • Meet Gift, female food delivery driver

    Gift came here from Nigeria and failed to find a job, until a pizza company offered her one. She's now one of the very few female delivery drivers in the UAE.

  • FARMER'S KITCHEN

    Farmer's Kitchen is back for 2021!
    With our partners Spinneys, we are going to help you wave goodbye to boring dinners, cluttered fridges, and lumpy leftovers!