Having fallen sharply in mid-March, the silver price has recovered strongly and further gains are forecast for the rest of the year, owing to the precious metal’s safe-haven status and a belief among investors that silver is undervalued in absolute terms to gold.
The silver price is forecast to surpass the $21/oz-mark in late-2020, with a fall in the gold:silver ratio – the quantity of silver ounces needed to buy an ounce of gold – to below 90, the Silver Institute reported on Thursday.
The metal’s price averaged $16.65/oz in the first half of the year, and reached $17.84/oz at the end of June. It has since broken through the $18/oz barrier.