Often overlooked in favour of its precious metal cousin Gold – Silver prices have tallied up an impressive gain over the past year.
Silver prices are currently trading close to $26 an ounce. That’s a stunning gain of 79% from a year ago, when the spot price was around $14.50 an ounce.
As the global economy reopens and the green energy and infrastructure spending boom gathers pace – Silver’s bullish trajectory shows no signs of slowing down anytime soon.
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 prices surged to a six-and-a-half-year high, while WTI Crude Oil hit three-year highs.
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.
Right now, Silver is still relatively cheap compared with its peers and certainly has a lot of catching up to do. In my opinion, Silver is definitely the one to watch in the third quarter of 2021.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
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