Last week, Bank of America caused a stir with its gold forecast. Analysts see the precious metal rising to $ 3,000 in the next 18 months. The study entitled “The Fed cannot print gold” paints an extremely bullish picture of the gold price. Now the US bank is targeting the silver price. Here, too, the analysts are optimistic and issue a price target well above the current price.
The Demand is big
Bank of America explains that weak industrial demand in particular, which accounts for around half of silver demand, is responsible for the fact that the silver price has developed significantly less than the gold price. After all, the economy had suffered the biggest slump since the Great Depression and silver demand could drop to its lowest level since 2004. However, the analysts have hopes that the economy will recover after Covid 19 and that silver demand will pick up again. Government measures to save the economy would not only boost industrial demand for silver, they would also ensure that silver is considered by investors as insurance against rising inflation. The analysts expect the silver price to rise to $ 20 in the next twelve months.