Looking back at 2020 Precious Metals prices, where will we go from here?

2020 was the banner year for Gold, hitting US$2074.96/ounce in August 2020. Silver has hit its high since April 2011 at US$29.795/ounce and Platinum has hit US$1075.699/ounce since August 2016.

Based on the GSC 10 a.m. Reference Price, Gold has increased 24.93%, Platinum has increased 47.44% and Silver has increased 47.54% in 2020.

The lowest price for all metals occured in March for the year 2020. This is also the period when the pandemic started to proliferate globally.

The pandemic has accelerated the rally for investors who are looking to protect their wealth, and this led them to stockpile precious metals, the known safe-haven. In addition to the increase in demand, the pandemic has affected the supply chain for the precious metals due to lockdowns. All these led to an increase in the premium of physical stocks.

With the huge government debt, negative real returns on bonds, low or negative interest rates and threats of inflation and market turbulence, what would your precious metals forecast be for 2021?

Will the silver continue to outperform in 2021? Will the basis of positive blast from the green transformation driving increased industrial demand, and the expected economic recovery?

Below is the chart that shows the Gold, Silver and Platinum spot price (SGD & USD) movement line for the year 2020. Based on the charts below, it shows that Gold and Silver are in tandem and have a closer correlation as compared to Platinum hence a diversification across different precious metals might be a good idea for a more robust portfolios.

Price based on GSC 10am Reference Price

Suzane