Gold Continues Its Bull Run, but Silver May Outperform in This Macro Environment
Portfolio Pulse from Kevin Green
Gold has seen a 7% increase over the last 8 trading sessions, reaching all-time highs above $2,300, driven by its value as an inflation hedge and central bank reserve component. Silver, with both precious and industrial properties, is positioned for demand growth, especially with industrial production increases in China. The iShares Silver Trust (SLV) has begun outperforming the SPDR Gold Shares (GLD), indicating a potential trend where silver may outperform gold due to its dual appeal in reflation and industrial expansion scenarios.
April 04, 2024 | 3:44 pm
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NEUTRAL IMPACT
SPDR Gold Shares (GLD) has seen significant gains, reaching all-time highs above $2,300, driven by its role as an inflation hedge and central bank reserve asset. However, it may face competition from silver (SLV) for investor interest.
While GLD has experienced significant gains, the emerging trend of SLV outperforming GLD suggests that investor interest may shift towards silver due to its additional industrial demand factors. This could moderate GLD's short-term gains, although it remains a strong inflation hedge.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
iShares Silver Trust (SLV) has started to outperform SPDR Gold Shares (GLD), indicating a potential trend where silver may outperform gold, benefiting from both reflation and industrial expansion.
SLV's recent outperformance against GLD, as indicated by the price ratio chart, suggests a growing investor interest in silver due to its unique position benefiting from both inflation hedging and industrial demand. This trend is likely to continue in the short term, especially with the industrial production increases in China.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90