Like other precious metals, silver has shown impressive growth this year. The price of silver surged by 38.3%, while gold increased by 25.7%.
It's important to note that traditionally, during periods of price growth, silver tends to gain more than gold, and conversely, during downturns, it also tends to lose more. Therefore, this asset is more suited for investors who can tolerate significant price fluctuations.
The particularly strong increase in silver prices occurred in the third quarter of 2020, largely driven by the industrial sector, as demand for solar panels, which utilize this metal, rose by 6.7%.
Conversely, in other industries such as photography and jewelry, demand actually decreased slightly.
However, the most significant growth was observed in physical demand, where interest in silver jumped by 12.3% last year. Analysts believe that this trend will continue into this year, driven by the impressive rise in price.
Furthermore, analysts at Goldman Sachs forecast a 50% increase in solar power installations by 2023 compared to 2019, which will correspondingly boost demand for silver in this sector.
