Gold, Silver Outlook 2021: Last year in 2020, precious metals like gold and silver gave better returns to investors. Due to the uncertainty caused by the Corona epidemic, investors invested in gold and silver as safe options. Last year, gold rose by about 28.24 percent in 2020, which was the highest gain of eight years. Apart from this, silver also rose by 45.80 percent in the domestic market, which was the highest gain after 2010. This year too, better returns are expected from gold and silver. Gold can get up to 33 percent return in 2021 this year and silver can get up to 21-33 percent return. Gold prices are currently Rs 48,818 per ten grams and silver prices are Rs 63,850 per kg.
Fluctuations throughout the year in 2020
In the midst of the corona epidemic, the year 2020 was like a coaster ride for the worldwide financial market. The year-to-year fluctuations continued in 2020 due to a decline in growth due to the Corona epidemic, the announcement of relief packages and extremely lax monetary policies. However, the arrival of the vaccine and the relief packages have raised hopes of early economic recovery. This will increase investment and increase expenditure, which can increase commodity prices.
Last year, the United States approved a relief package of $ 2 trillion (Rs 146.73 lakh crore) due to the fear of recession due to corona epidemic to support the economy. After this, US President Donald Trump approved an additional package of $ 2.3 trillion (168.74 lakh crores). The US Fed Reserve lowered interest rates last year in March 2020, to near zero. It is being hoped that the US Fed Reserve will not make many changes till 2022 next year to strengthen the US economy.
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Gold
- Last year, gold fell to Rs 38400 per ten gram in March 2020, but after that, due to the circumstances arising out of the Corona epidemic, investors started investing in gold as a safe option and consequently in 2020 the price of gold was Ten grams reached the price of Rs 56,191.
- Gold prices continued to be supported by uncertainty due to the Corona epidemic and weak dollar, but news of the Corona vaccine put pressure on its price. However, for the whole year, on the commodity exchange MCX, it gave investors a return of about 28.24 per cent in the last year 2020.
- The Federal Reserve has decided to continue its rates close to zero. In addition, global debt is increasing. The central bank has pumped in $ 1.5 trillion (Rs. 1100 lakh crore) into the economy and the central governments have also issued additional relief packages that have reached global debt equal to 100 per cent of GDP which was 83 per cent in 2019. Increase in global debt and availability of interest at lower rates will attract investors towards gold in 2021 this year.
- Cases of corona infection are still increasing in the US and European nations. Despite the creation of the Corona vaccine, concerns such as storage, post-vaccination effects, and access to all have kept Gold still a better investment option than equities.
- Demand for physical gold is expected to remain constant due to the recent decline in gold and relaxation in restructures. China and India are its biggest consumers. Apart from this, recent data indicate that central banks have increased gold purchases.
- Talking about 2021 this year, the price of gold can reach 65 thousand per ten grams.
Silver
- Apart from gold, other precious metal silver also gave tremendous returns to investors in the last year 2020. On the commodity exchange Comex, in August last year, it had jumped 132 per cent from its low in March 2020 and it was a record seven-year price.
- Silver prices reached a record price of Rs 77,749 per kg in the domestic bullion market in the last year 2020. Although the price declined after that, but by the end of the year he gave a return of about 45.80 percent in the year 2020.
- Due to the worldwide economic uncertainty caused by the Corona epidemic, investors started searching for safer options. Gold reached an all-time record price last year. After the rise in gold prices, investors started investing in silver as an alternative to cheap investment. Due to this, its prices started climbing.
- Many countries around the world announced relief packages and the US Fed cut rates drastically. In addition, the weakness of the dollar limited the rise in silver prices, but silver again strengthened amid reports of vaccine arrival.
- Industrial demand for silver was affected in the midst of the Corona epidemic crisis, but gradually its demand increased and this year will continue to be strong in 2021. More than half of the demand for silver comes from the industrial sector.
- This year, after the formation of the next President of the United States, Joe Biden, in 2021, Solar Energy Investments will increase, which will reduce the supply of silver. Apart from this, due to the European Green Deal and China’s 2060 Carbon-Natural Goal, its supply will also decline. Due to these reasons, the price of silver in 2021 will remain strong.
- In the year 2021, silver can reach a level of Rs 77 thousand in the medium term while in the long term it can reach the price of Rs 85 thousand per kg.
