RBC Raises 2020 Silver Price Forecast Substantially

SEATTLE (Scrap Monster): The RBC Capital Markets has raised its silver price forecasts for the current year. The bank has raised the forecasts for 2021 and 2022 as well. The higher forecasts are mainly on account of anticipated robust global industrial production and strong investment demand.

The forecast for 2020 has been hiked by 16%. According to RBC, the silver prices are likely to average around $17.76 per Oz this year. Also, the targets for 2021 and 2022 have been hiked by 17% and 14% respectively. The prices are expected to average at $18.75 per Oz in 2021 and $18.50 per Oz in 2022.

Also, RBC predicts deficits for the metal in 2020 and 2021, as opposed to modest surpluses predicted before.

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The report states that there could be better outcome than previously expected, despite fears of year-on-year declines in global GDP and industrial production. The investment demand in silver-backed ETF is expected to continue its strong run. Incidentally, the metal-backed ETF holdings have added nearly 140 million ounces during the past three months.

The global silver supply was badly hit by Covid-19 disruptions. The Americas region, which accounts for majority of the world’s primary silver production, had more restrictive lockdowns in place, compared to other regions. Going forward, RBC foresees declining silver production from primary mines over the forthcoming years.