Gold and silver remain in the portfolios of large investors despite the expectations of economic growth.

Marc Desormeaux, senior economist at Scotiabank, said the Canadian bank remains bullish on precious metals because they expect a rally this 2021. In fact, Desormeaux said silver could surpass gold by the end of the year.

Scotiabank forecasts the world economy to grow by 5.6% this year, and to expand by 4.4% in 2022. The US economy, meanwhile, will rise by 5.8% this year, and increase by 4.3% next year.

But Desormeaux claims that this growth will not be free.

"Strong recovery from the current recession fuels inflationary expectations and devalues the US dollar. Accordingly, it supports precious metals, especially silver," Desormeaux said.

In short, rising inflationary expectations does not only support the precious metals market, but puts pressure on the US dollar. Therefore: "Dollar will depreciate as global economic conditions and risk sentiment improve."

Gold itself will remain relatively stable until the end of the year, averaging around $ 1,850 an ounce. According to Desormeaux, this is the highest average price in the entire history of observations.

"Low interest rates and the Federal Reserve's tolerance for above-target inflation will support gold. Although the yellow metal is currently declining, it is still at a historically high price level," Desormeaux said.

As for silver, its current popularity may be the reason why gold is quite weak at the moment. In fact, Scotiabank expects it to continue soaring.