Having been in the eye of the storm last year, as lockdowns globally weighed heavily on demand, commodities are back in vogue.
Benefitting from a better-than-expected economic recovery, there are both short- and long-term trends presently at play for the asset class. We have growth in money supply, rock bottom interest rates and fiscal stimulus - all of which have boosted inflation expectations. Better the devil you know: Investors turn to silver in an uncertain year If investors believe in the inflation trade - and the bond market does at present - then with central banks spending their way out of trouble, real assets such as commodities are an attractive option. Add the potential for a weaker US dolla...
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