The Biden effect
The U.S. elections could also come into play, Citi said.
Analysts at the bank said markets are pricing in the potential for more demand for silver, if Joe Biden wins the U.S. presidential elections and delivers his green infrastructure plan.
Under Biden’s plan, commuter trains, buses and passenger vehicles will run on electricity or clean fuel, and clean light rail and bus systems will be developed. In addition, the plan includes offering incentives to upgrade housing and commercial buildings to make them more resistant to extreme weather.
“During bull markets for both metals, fleet-footed silver often ascends faster than its heavier, more expensive cousin,” Ned Naylor-Leyland, precious metals fund manager at Jupiter Asset Management, wrote in a note last week.
He pointed to the use of silver in an increasing number of medical applications, as well as in electronic components for 5G telecommunications networks.
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www.cnbc.com/2020/08/05/investing-in-precious-metals-silver-prices-set-to-outperform-gold-prices.html