Silver has already confirmed the claim that the correlation between it and gold is severely impaired. If until 2018 we bought gold together with silver, things are now quite different.
It seems the reason for the divergence between the two metals lies in the weak investment demand for silver in recent years. Meanwhile, ETFs in gold continued to record new peaks in 2017 and 2018, and the "Silver" ETF just stagnated. From a reputation point of view, gold has always been the No. 1 metal for investors, especially in moments of uncertainty.
The trend is likely to continue this year, and Goldman predicts it will even continue in 2020. They also revised their silver price target:
In their previous analysis, they predicted a $ 16.5 / $ 17 / $ 17.5 price target respectively.
Graphs: Used with permission of Bloomberg Finance L.P.
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