Some analysts and traders are betting that silver will outperform gold this year. Silver’s historic price performance relative to gold and the ongoing demand-supply dynamics may be the reasons behind such beliefs. Silver is glittering more than gold nowadays even though the yellow metal has entered the correction zone after hitting an all-time high in August last year.
There were hopes of an increase in industrial demand as many large economies swiftly revived from the negative impact of Covid -19 pandemic and this boosted the sentiment in the metal.
Gold and silver have a high positive correlation, and historically silver has always underperformed gold. Gold triggers the initial move in bullion and, eventually, silver gains traction.