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'Schizophrenic' silver heading for US$50/oz, says Grummes

Silver has had a rocky 2020 but is set to break US$30/oz in 2021 before speeding to US$50/oz and then into three figures further down the road, analyst Florian Grummes said at the European precious metals summit on Monday.
'Schizophrenic' silver heading for US$50/oz, says Grummes 'Schizophrenic' silver heading for US$50/oz, says Grummes 'Schizophrenic' silver heading for US$50/oz, says Grummes 'Schizophrenic' silver heading for US$50/oz, says Grummes 'Schizophrenic' silver heading for US$50/oz, says Grummes

Silver will break through the US$30/oz mark in 2021, analyst Florian Grummes predicts.

Oonagh Reidy

Grummes, technical gold analyst and co-founder of Midas Touch consulting, described the precious metal a "schizophrenic diva", but cautioned against underestimating its future trajectory.
 
"I'm definitely in the camp that says, at some point in the future, we will see silver at three-digit numbers because, if it takes out $50 - that's the all-time high - then the sky's the limit and it will probably explode in price," said Grummes. 
 
Silver crashed to a 11-year low of US$11.65/oz in mid-March, but has since recovered. It was priced at US$24.63/oz at midday UK time on Wednesday.
 
Once it moves beyond its resistance zone of US$30/oz, which Grummes said might take a year, then silver should be "on the way to $50/oz" and into three-digit numbers.   
 
Not for the faint hearted
 
With this level of volatility, silver investing is not for the faint hearted, Grummes conceded, especially if you are buying silver mining stocks over the metal itself.
 
"You really need strong nerves and a good plan to weather that [volatility]. Obviously if you just invest into physical gold and silver it's very easy to sit through those movements but if you're in mining stocks ..you really need to do your homework," Grummes said.