Silver Surges: Analysts Predict Outperformance Over Gold in the Next 12 Months
In a year where gold has been stealing the spotlight, silver has quietly been making its own impressive gains. Up 29 percent year to date, silver is matching gold’s performance in percentage terms, but analysts at UBS believe that silver may have an even brighter future ahead.
UBS analysts predict that silver will likely outperform gold over the next 12 months, citing favorable market conditions and ongoing geopolitical tensions. The gold-silver ratio is currently over 84:1, significantly wider than historical averages, indicating that silver is currently undervalued compared to gold.
With demand for silver outstripping supply for the third consecutive year and favorable supply and demand dynamics in play, UBS expects the silver market to remain in deficit, leading to potential price rallies. Historical trends also suggest that silver tends to outperform gold in a gold bull market, making it an attractive investment option for savvy investors.
In conclusion, silver’s potential for outperformance, coupled with favorable market conditions and historical trends, make it a compelling investment opportunity for those looking to diversify their portfolios and hedge against geopolitical and economic uncertainties. Don’t overlook silver – it may just be the shining star of your investment portfolio.