Analysts from Kobeissi Letter, a commentary on global capital markets, have assessed that the behavior of silver, which is experiencing a larger bull market than gold, could predict a significant upcoming macroeconomic crisis. According to Kobeissi, silver and gold could predict an inflation curve similar to the one observed in the 1970s.

Silver Bull Run Could Signal a Deep Crisis

The current rally in silver, which has seen its price rise 36% year-to-date, could be interpreted as the market preparing for an upcoming macroeconomic crisis. According to analysts from Kobeissi Letter, a commentary on global capital markets, similarities between the behavior of the Consumer Price Index (CPI) in 2020 and that of the 1970s suggest that this may be the case.

While stocks have rallied amid this economic climate, silver — and to a lesser extent gold — has soared, with prices up 80% over the past two years. Silver has beaten gold’s rally, with prices up a little more than 60% over the same period.

Assessing these price increases and the macroeconomic factors driving the market following the recent Federal Reserve move, Kobeissi analysts stated:

With the Fed cutting 50 basis points and expectations of more in the future, is inflation coming back? Perhaps the market is pricing in a significant chance of inflation returning.

Another factor that could push silver prices higher is the US national debt, which is expected to reach over $50 trillion by 2030. Geopolitical uncertainty is also playing a role in this rally, as the chance of a recession by 2025 remains at 50%, with some economists warning that early signs are already there.

Others believe silver could be more attractive than gold for those looking to capitalize on gold-like moves but maximize their returns. "Investors looking to enter the investment metals market may find silver more attractive due to its lower price compared to historical highs," Saxo Bank analysts explained.

What do you think about silver’s potential in this bull market for metals? Let us know in the comments below.
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