There is plenty of meat to chew here today, from silver demand to mining stocks, gold price trends to why people are selling ETFs for cryptocurrency. We have all this and more for you today.

Thanks for trusting in Gold & Silver Central to deliver you the latest news on precious metal investing. These are exciting times for metals investors like you, and we know you are counting on us to find useful, helpful articles to inform your decision making.

Here’s today news. Let’s dig in…

Price
Will Silver Investment Demand Go Higher? Expect a Five-Year High, Says Schiff Gold

Physical silver investment is expected to surge by 27% this year, according to the latest data released by the Silver Institute. Demand for investment silver is projected to come in at 236.8 million ounces in 2020. That would mark a 5-year high. Silver coin and silver bar sales in the US have driven the big gains in investment demand. Retails sales are projected to rise by 62% on the year. This will more than offset the drop in silver investment demand in India – the world’s second-largest silver market. The rising price of silver has helped drive investment demand. As of Nov. 13, the white metal was up 38% on the year. Global holdings of silver in silver-backed ETFs have also surged this year, pushing…

Commentary
Miners Will Face Tough Road Ahead

From Przemy Slaw Radomski, CFA – “Despite a recent decline in the U.S. Dollar Index and small jumps and rallies aside, miners have not moved upwards, defying the usual logic that as the USD Index moves down, precious metals move up. Bearish headwinds for the coming weeks remain strong, a harbinger of a longer slide. In yesterday’s analysis, I told you about the bearish clues coming from the relative performance of miners vs. gold and stocks, and gold vs. the USD Index. In today’s analysis, I’m going to tell you that we saw even more of those signs, which strengthened the bearish implications of the previous ones. This in turn adds to the strength of the other – more profound – bearish factors such as the broad bottom in the USD Index. Let’s start today’s analysis by saying that miners have just closed at the second lowest daily close since early July.”

Price
Gold Will Trend Downwards in the Short Term

The impact of news of positive COVID-19 vaccine trials on markets was electric, weighing on gold, which crashed below $1,900 per ounce. Strategists at HSBC believe more immediate-term downside is likely but the longer-term outlook remains positive for the yellow metal.

Commentary
Why Investors are Selling Gold ETFs for Cryptocurrency

Many traditional investments could experience dramatic drop offs as investors turn increasingly to cryptocurrency as a profitable investment choice. In a recent analysis, JPMorgan has shown evidence that institutional investors are divesting from gold ETF into Bitcoin and other cryptocurrency investments. In the report, which compared the “flow trajectories for Grayscale Bitcoin Trust (GBTC) and gold Exchange-Traded Funds (ETFs)”, JPMorgan attributed the flight to cryptocurrency to “corporate endorsements and the endorsement by PayPal, a couple of weeks ago. The report then opined that the analysis “supports the idea that some investors that previously invested in gold ETFs may be looking at bitcoin as an alternative investment to gold.”

Stock Market
Global Gold ETFs: A Popular Gateway to the Gold Market

Gold-backed exchange-traded funds and similar products (gold ETFs)1 have flourished since their introduction in 2003, attracting both institutional and retail investors across the globe. The increased quantity, size and location of gold ETFs have provided easier and more efficient access for investors allowing them to utilize many general advantages of ETFs. While there are numerous ways for investors to own gold, such as bars, coins, derivatives, over-the-counter (OTC) instruments and gold stocks, many have embraced gold ETFs for qualities such as cost efficiency, transparency, and liquidity. The growth and evolution of gold ETFs have already helped advance the broader gold market and are likely to continue to do so, providing additional support for the role of gold in portfolios.

Commentary
3 Ways to Prepare for a Weaker Dollar

The US dollar index has already dropped close to 10% from its highs in March 2020, and economists at UBS anticipate renewed weakness in 2021. To position for this, investors should diversify across G10 currencies or into select emerging market currencies and gold. READ MORE

Thanks,
Gold Silver Central