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.
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Navigating the future of precious metals
In a recent episode of the Vancouver Resource Investment Conference podcast, hosted by Jesse Day, guests Stefan Gleason and JP Cortez shared their expert analysis on the dynamics of the gold and silver markets and discussed legislative efforts to promote these metals as sound money in the United States.