BofA Analysts Project a Silver Price of $30 as US Dollar Keeps Weakening

JP Buntinx
August 6, 2020

The silver price has gone through a surprisingly bullish period for quite some time now. This uptrend is not coming to an end either, if analysts of Bank of America is to be believed. The ongoing weakness of the US Dollar continues to fuel demand for precious metals. 

More Silver Price Momentum is Coming

Several factors are feeling the demand for precious metals. This will, by default, impact the prices of silver, as well as gold and other precious metal. These safe haven assets have been in high demand since the coronavirus pandemic began. Judging by the current ongoing developments, it seems unlikely that this demand will decrease.

One important aspect to keep in mind is how silver has many use cases. Gold, on the other hand, does not, which may explain why its price has been slower to rise in comparison to its little brother. Silver’s value has genuinely exploded, and even more than doubled since March of this year. 

Contrary to what most people expected, the US Dollar is not performing all that well. The greenback is losing value against all major currencies, including the Pound Sterling and Euro. The GBP/USD pair has hit its highest level since March, further confirming that the Dollar is not pulling its weight right now. 

A weaker US Dollar will continue to fuel gains for most markets. It is evident that the stimulus checks and other helicopter money packages are now crippling the nation’s economy. As unemployment figures remain high, and schools are still unlikely to open again, this situation will not improve. A bullish sign for precious metal, but bad news for everyone who depends on fiat currencies to make a living.

BofA Analysts are Bullish

For analysts, the current market sentiment isn’t making life that much easier. Those working for Bank of America aren’t too sure about what to make of this current situation. In a new report, the BofA Securities arm indicated that this is just the beginning of the bull run.

More specifically, they expect to see gold rise as high $2,159, and silver could very well top $30.49. Even copper has received a near 15% upward value adjustment. It is, for most traders, all about precious metals right now. 

A similar sentiment can be found across cryptocurrency markets. Bitcoin is on its way to hit $12,000 again, whereas Ethereum inches closer to the $400 mark. All of these crypto assets equally benefit from the weakening dollar, and continue to follow a similar trend to gold and silver. 

Easily open your Swiss tax free gold vault in under 6 minutes

It’s Free to open a Swiss vaulting account, you can buy and sell gold directly to it instantly.

0 Comments

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Silver Bug Profile: Alisdair Macleod

In the modern era, Macleod is best known for educating the masses on how governments handle money and the potential consequences.

Unveiling the System Behind the IMF Lending $50 Billion to Member States Fighting the Coronavirus

Currently, it has yet to be determined which options will be explored by the different member states. There is no such thing as free money, not even during a coronavirus outbreak.

Silver Bug Profile: Keith Neumeyer

Keith indicated that there would be a new bull market for all precious metals in the next few years. So far, 2020 has proven that sentiment correct, although $130 remains a lofty silver price target.

Gold Bug Profile: Peter Thiel

Since his tenure at PayPal, Peter Thiel has made a lot of headlines due to his investments. More specifically, he is an active VC for tech companies in their early stage of development.

5 Reasons why Investing in Physical Gold is Always Worthwhile

Regardless of buying digital or physical gold, this precious metal is always worthwhile to investors. It is one of the few markets that offers key advantages one will rarely find in other assets.

Silver Bug Profile: Peter Leeds

Similar to his opinion on gold, Leeds is very hopeful when it comes to silver. In fact, he considers it to be the top investment for 2020 and possibly beyond,

Gold, Silver, and Crypto Markets Seem Poised for a Massive Bounce

For companies that are publicly traded – and often work over the weekend – having 24/7 exposure across the markets would be ideal.

Gold Bug Profile: Doug Casey

The name Doug Casey will ring a bell with financial buffs due to his 1979 book. Titled “Crisis Investing”, it quickly rose the ranks to become the number one The New York Times Non-Fiction Best Seller in 1980.

Welcome To The New Bar9 Rebranding

To all Bar9 customers, I'm proud to announce the rebranding of Bar nine and a whole new informative front end. As we move into 2020 Bar9's mission is to make it easier for anyone to move in and out of physical hard assets and become a little more bank independent. The...

Gold and Silver Bounce Back as Stock Markets Continue to Struggle

Although the markets aren’t out of the woods yet, things are looking better. There is some positive momentum all around, for a change.

South Africa may Shut Down its Gold Mines due to the Coronavirus Crisis

This news coming out of Mongolia is rather surprising. Unlike other countries, it would appear that this region is still providing ample access to gold deposits.

The World’s Largest Silver Producer is Closing Domestic Mines for a Full Month

In Mexico, there will be a major change for most silver mines. Multiple locations will have to shut down their operations for at least one full month.

Gold and Silver Futures Turn Bearish as International Demand Weakens

Some analysts expect a new all-time high for gold later this year, although there will be some volatility to contend with before that happens.

Gold or Silver: Which is Best in a Pandemic-Induced Recession?

Countless civilizations—from ancient Egypt to Mesopotamaia—have built their economies on the solid foundations of gold and silver bullion. The exchange rate between the two metals dates back as far as 3000 BC. But while both metals are often lumped together by...

Gold Bug Profile: Thomas Puppendahl

He went as far as claiming how the bull market will become a lot more violent, at least for precious metals. Under normal circumstances, that isn’t the best sentiment, but given everything that transpired in 2020, it may just come true.

Silver Bug Profile: Adam Hamilton

Most mining operations have very mixed – and primarily disappointing – results in Q1. That has not affected the price of silver in a negative manner.

Silver Bug Profile: David Morgan

Morgan prefers educating the masses on how a sound financial system would work. What we have in place as of right now is the exact opposite of a sound system

Indian Officials Confiscate 9.3kg of Gold From Smugglers

What is rather interesting is how all of these bars have forged foreign markings. The objective of the individuals was to sell it in Mangaluru and districts of North Karnataka

Gold Bug Profile: Adrian Ash

Ash is convinced that owning both gold and silver – either as part of an active portfolio or just in terms of hard assets generally – makes a lot of sense

Analyst Outlines how Silver is a Seriously Undervalued Asset Right now

Everything comes down to how things will evolve over the coming months. If the demand will pick up again, and the supply remains very limited, things may begin to shift in a few months from now.

Translate Blog Post

Article Categories

Blog Stats

  • 105,975 hits

Follow the CEO on Twitter

%d bloggers like this: