The last few months have been volatile for the precious metals market and this is a trend that we continue closely monitor ahead of 2021.
The recent pressure comes only a few weeks after gold and silver traded at new highs and this is a trend that caught our attention. Although there is not one specific factor that caused pressure metals to selloff, we attribute some of the weakness to the resurgence of the cryptocurrency market and the current economic climate in the US.
Based on current projections, the Republican party is expected to have control of the Senate while the Democratic party has control of the House of Representatives. Going forward, we expect to see a lot of legislation shot down by the Senate and expect there to be tough battles when it comes to stimulus and fiscal policy.
In 2021, we expect to see governments continue to print trillions of dollars to combat the COVID pandemic. The continued focus on monetary stimulus should have a positive impact on precious metal prices and we will monitor how Democrats and Republicans can work together to put the pandemic behind us.
Although we expect to see rising interest in cryptocurrencies, we believe that precious metals will remain a defensive industry and are of the opinion that the recent weakness is transitory. If both verticals can show signs of strength in 2021, we believe that a select numbers of companies will benefit and this is a transition that our readers need to be aware of.
If our prediction is accurate, we expect precious metal miners to benefit from rising gold and silver prices. Canadian junior miners are some of the best positioned companies to benefit from the trend and this is a vertical to be focused on.
If you are interested in learning more about the companies that would benefit from rising precious metal prices, please send an email to firstname.lastname@example.org with the subject “Canadian Junior Miners” to be added to our distribution list and to learn more!