Will stagflation drive silver prices higher in Q4 2021? [Video]
|As the global energy crisis intensifies and Natural Gas prices surge to record highs – suddenly Stagflation has returned as a dominant market risk, casting a shadow over the economic recovery from the COVID-19 pandemic.
The risk of a stagflation scenario of slowing global growth and rising prices across the board is enough for traders and policymakers to take serious note of.
Throughout September, the prospect of the world’s leading central banks moving more aggressively to stamp out inflation pushed Silver prices to their lowest level since July 2020.
However, as traders know – when something goes on sale, you have to buy it.
Despite the near-term volatility, many traders remain bullish on Silver in the long-term due to its role as a hedge against inflation, but more importantly, because they expect the global green energy transition will eventually drive up demand for the precious metal.
Growing demand for clean energy and electric vehicles will make Silver an essential commodity similar to its peers such as Copper, Palladium, Lithium, Nickel and Uranium – all of which have surpassed multi-year highs in recent months.
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.
Historically, 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.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.