Commodities: Silver
Silver surged over 6% on Friday night, taking it to fresh decade highs – note not all-time highs like gold. The risk/reward looks attractive, with silver potentially poised for explosive gains in the months ahead. Buying new highs goes against the grain for many investors/traders, but by definition, new breakout moves must start with new highs.
US equities have been consolidating their strong ~10% bounce from August lows over the last eight sessions. With markets about to enter the often tough September ahead of the uncertainties created by the November election, which Sportsbet has as a coin toss, we have tempered our market view to neutral, but we stress this is not a sell.
US equities were again quiet overnight, with most indices managing to eke out small gains. Bond yields edged lower but not enough to dispel jitters ahead of Friday as the market continues to walk along the gymnast’s bar: Too strong, we won’t get rate cuts, and too weak, we could see increased concerns that the economy will slip into a recession—the fun job of Jerome Powell and all at the Fed.
Copper exploded higher last week, but even after the substantial gains, we remain bullish moving forward. Friday’s +3.6% advance saw copper ETFs up ~4.7%, illustrating many investors aren’t expecting the industrial metal to extend its recent gains. Analysts are generally behind the curve when it comes to commodity prices, and we believe there’s never been a better example than copper today, with many forecasts closer to $4 than $5, let alone the $6 that may be on the horizon, i.e. MM believes upgrades are inevitable.
How about silver as a metal & SVL as “the biggest silver AU deposit”? Thanks
On Tuesday you suggested that you were bullish on silver for 24. So can you suggest some silver producers to consider investing in?
Gold popped almost $US50/oz yesterday evening, posting another fresh all-time high in the process as investors/traders further digested last week’s market-friendly PCE Index data. The Fed’s preferred gauge of inflation is cooling which suggests the Fed is getting ever closer to cutting rates. The precious metal is also enjoying the added tailwind of powerful Chinese demand and ongoing global political tensions, what’s not to like? Gold has surged ~12% over the last six weeks, and with no near term end in sight for the three bullish drivers mentioned previously, we can see it testing $US2400-2500 before Christmas.
