Last Friday markets were shocked with the latest inflation print showing that inflation in the US was continuing to track even higher. Investors are now growing more and more concerned that inflation may be here to stay like it did in the 70’s where inflation averaged over 7% for a decade! The greatest inflationary pressures have been seen across essential items like food, transportation, and housing.
Now in a high inflationary environment gold and silver prices tend to gain. So, will silver move higher over the next few weeks on inflationary fears encouraging commodity buying?
Silver has a strong period ahead from June 24 through to September 04. Over the last 15 years prices have gained nine times and fallen six times. The largest gain has been a huge 54.34% and the average gain has been 6.74%.
Will silver shine again this summer?
Major Trade Risks:
If the Fed hike more aggressively than the market is expecting that could result in some near term pressure to the downside in silver with a strong USD. However, be aware that the normal yield, and USD, correlation may break down.
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