Is Silver Price On The Verge of Another Breakout?

Silver Prices outperformed Gold this week on bets that rising demand for industrial metals in 2021 – will surpass supply and support a long-term rally.

This week, traders shifted their attention from Gold to Silver, Platinum and Copper. The industrial metals complex is expected to benefit from tight supplies, strong investment demand and the global recovery – positioning this specific group of metals as one of the hottest asset classes to watch in 2021.

While big moves in Gold prices remain inevitable down the road, the monetary metal is currently taking a back seat to the industrial metals.

Tesla is another factor driving bullish sentiment for the industrial metals complex.

In the last filing with the SEC, Tesla stated that “In January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity. We may invest a portion of such cash in certain alternative reserve assets including bullion, precious metals-related exchange-traded funds and other assets as specified in the future.”

Although Elon musk has not tweeted about acquiring any specific precious metal holdings since last year, the statements above to the SEC clearly indicate his intent to diversify out of the U.S. dollar.

Silver prices are currently trading near $27 an ounce, only $3 away from its February peak. Elsewhere, Platinum held onto its gains made early this week – trading near a six-and-a-half-year high. Whilst Copper prices jumped to a nine-year high on Friday.