Higher investment demand in Silver to drive prices higher in 2020

The investment demand rather than industrial demand in Silver will drive the price higher in 2020

Silver prices rallied by 8 percent last week on falling Gold-Silver ratio. At the end of last week, the price of silver was sitting around the $15.80 per troy ounce. Silver prices have under-performed gold prices in 2020 and made a low of $11.74 in March, the lowest price since 2009.

We are seeing some similarities in the silver market when compared its price moves during the recession like crisis back in 2008. Firstly, if we look at the stimulus measures announced during 2008 and 2020 recession like scenarios, Fed announced unprecedented stimulus package with short term rates to zero and started the Quantitative Easing (QE) program.

During Q3 2008, Fed borrowed $530 billion while this year it said it would borrow almost five five times the amount i.e. $3 trillion.

Secondly, Gold-Silver ratio in 2008 and 2020, the ratio hit its peak in both but the high in this year have been significant. The ratio rose to record high of 124 in March 2020 and currently the ratio is standing at 104.

Thirdly, the selling in Silver during 2008 before it dramatically rallied to record high of $49.82 an ounce in 2011 is similar when we look at the selling in March when prices made low at $11.74 followed by the price rally towards $17.10 an ounce till date.

To conclude with, if the history has to repeat in 2020 as Silver have performed better during Global Financial Crisis, we may see a huge upside in Silver prices in the next two years. The investment demand rather than industrial demand in Silver will drive the price higher in 2020. The falling Gold-Silver ratio and five times more monetary easing reflect far greater threat to our economy.

Therefore we expect MCX Silver prices to trend higher towards Rs 51,000-Rs 53,000 in the coming year. Currently, the MCX Silver prices are trading at Rs 47,000 per kg.

Related Post


Learn How A Precious Metals IRA Can Secure Your Retirement

The precious metals market may seem intimidating, but it’s not as it seems. Our team has compiled a summary of our tips and information into a free guide so you can learn how to begin securing your future.


We Will Guide You Every Step Of The Way

Schedule a Call
Learn Why Everyone Should Own Real Gold & SilverRequest Your Free Step-By-Step Investment Guide

"*" indicates required fields

I'm interested in (please select all that apply):
This field is for validation purposes and should be left unchanged.

Inside this Free Investment Guide

  • How a Gold IRA Gives You Full Control.
  • How You Can Grow Your Retirement.
  • How to Open a Gold IRA Tax & Penalty Free.


By clicking the button above, you agree to our Privacy Policy and Terms of Service and authorize Oxford Gold or someone acting on its behalf to contact you by text message, ringless voicemail, or on a recorded line at any telephone or mobile number you provide using automated telephone technology, including auto-dialers, for marketing purposes. No purchase required. Message and data rates may apply. You also agree to receive e-mail marketing from Oxford Gold, our affiliated companies, and third-party advertisers. To opt-out at any time click here or reply STOP to opt-out of text messages.