Phil Carr
The Gold & Silver Club
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:
Trading has large potential rewards, but also large potential risk and may not be suitable for all investors. The value of your investments and income may go down as well as up. You should not speculate with capital that you cannot afford to lose. Ensure you fully understand the risks and seek independent advice if necessary.
Recommended Content
Editors’ Picks
AUD/USD: A tough barrier remains around 0.6800
AUD/USD failed to maintain the earlier surpass of the 0.6800 barrier, eventually succumbing to the late rebound in the Greenback following the Fed’s decision to lower its interest rates by50 bps.
EUR/USD still targets the 2024 peaks around 1.1200
EUR/USD added to Tuesday’s losses after the post-FOMC rebound in the US Dollar prompted the pair to give away earlier gains to three-week highs in the 1.1185-1.1190 band.
Gold surrenders gains and drops to weekly lows near $2,550
Gold prices reverses the initial uptick to record highs around the $$2,600 per ounce troy, coming under renewed downside pressure and revisiting the $2,550 zone amidst the late recovery in the US Dollar.
Ethereum could rally to $2,817 following Fed's 50 bps rate cut
Ethereum (ETH) is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's (Fed) decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds (ETF) recorded $15.1 million in outflows.
UK CPI set to grow at stable 2.2% in August ahead of BoE meeting
The United Kingdom Office for National Statistics will release August Consumer Price Index figures on Wednesday. Inflation, as measured by the CPI, is one of the main factors on which the Bank of England bases its monetary policy decision, meaning the data is considered a major mover of the Pound Sterling.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.