Commodity rally raises hopes of new bull run

Financial Times/Michael Mackenzie

Repost from 2-17-2021

“The trend will sap demand for fossil fuels but also will drive a strong cycle for copper, nickel, silver and platinum — important materials for batteries and for the expansion of electrical power grids and charging stations.”

USAGOLD note: FT’s Mackenzie joins a growing list of analysts and commentators contemplating the emergence of a secular bull market in commodities that could last for the next decade. Per the snippet above – more than hopes of Reddit-led short squeeze – USAGOLD clientele have increasingly added silver and platinum to their holdings for two more lasting and fundamental reasons. First, their relatively low prices compared when with other assets – and not just gold, but stocks and bonds as well. Second, a perception that demand will increase for both items in the years to come as a result of the Biden push for a greener economy. The chart below shows the uptrend many see as part of a first leg in the rally.

line chart showing start of commodity cycle higher

Chart courtesy of TradingEconomics.com • • • Click to enlarge

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