Silver is often looked at in gold’s shadow. The price performance of two metals is 80% correlated. We find that the best way to model silver prices is by looking at gold prices.
Precious metals equities have re-rated to historical peaks or above. Morgan Stanley lifts its bull cases to reflect this, but still the risk reward is unappealing bar continued commodity price rises. MS downgrades Randgold to UW, with Centamin most and Fresnillo least preferred.