Silver set to outshine gold again

Sentiment in the silver market has remained bearish this year, despite higher gold prices and the strength of global equities. Silver and gold can become disconnected at times, reflecting their very different demand profiles. However, in our view, the long-term positive relationship between the prices of the two precious metals should still hold. We therefore expect silver prices to pick up in the second half of the year, even without the further recovery that we anticipate for gold.