Gold down despite a weaker dollar and bond market
TSI reports a 32% increase in investor silver demand for 2021 led by India and the United States

(USAGOLD – 1/3/2021) – Gold is down this morning responding to a firmer dollar and a selloff in the bond market. The lower pricing to start the year follows last week’s year-end rally that took it to the $1830 level. Gold is down $15 on the day at $1816. Silver is down 27¢ at $23.09. The Silver Institute posted its forecasted year-end (2021) results for the white metal last week and reports record global demand with investors taking advantage of consistently lower, rangebound pricing.

Overall demand, it says, will surge past the one billion ounce mark for the first time since 2015, led by Industrial demand at 524 million ounces – a new high. It forecasts investment demand will end the year 32% higher due to heavy uptake in India and (surprisingly) the United States. “Building on solid gains last year,” says TSI, “US coin and bar demand is expected to surpass [for 2021 year end] 100 million ounces for the first time since 2015. Growth began with the social media buying frenzy before spreading to more traditional silver investors. Indian demand reflects improved sentiment towards the silver price and a recovering economy. Overall, physical investment in India is forecast to surge almost three-fold this year, having collapsed in 2020.”

Chart of the Day

Silver price
(1971 to present)

Chart courtesy of TradingView.com • • • Click to enlarge

USAGOLD note: As this chart amply illustrates, silver can lie in quiet dormancy for long periods, but when it decides to move higher, the result can be dramatic.