Will silver become the comeback kid of 2021? [Video]
|While the Gold market has swiftly recovered from its recent flash crash, which sent prices briefly below $1700 an ounce, Silver has continued to consolidate near key support levels.
However, I wouldn’t rule Silver out just yet!
Silver has a habit of lagging behind the rest of the commodities complex for extended periods of time – but once it gets going, it really gets going.
Silver has a well-documented track record of staging spectacular comebacks, when you least expect it. With prices currently in significantly oversold territory – ultimately suggests Silvers fortunes could be about to turn.
If you want to know where Silver prices are heading next, then just take a look at the bullish trend in Oil prices. This week, Brent Crude Oil surged 11%, its biggest weekly jump since June 2020, while WTI Crude Oil is up nearly 10%, which is its strongest rise since August 2020.
Higher Oil prices usually feed into inflation expectations and boost demand for assets with inflation-hedging capabilities, such as the Precious Metals.
Oil’s current inflationary rally provides bullish tailwinds for all Commodities, especially inflation hedges like Silver.
Historical trends from the past two decades show a correlation between higher Oil and Metals prices. In fact there are ten historical instances since 2001 when Oil has ripped higher by more than 50% in 6 months. As a results, Precious Metals have often followed the large rally in Oil with a closely matched increase.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
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