Tuesday, 02 January 2024 12:17 GMT

Silver Hits Record High, $200 Next?


Date:

(MENAFN- Investor Ideas) Investorideas ( Newswire) a go-to platform for big investing ideas, including mining stocks issues market commentary from deVere Group.

Silver hits record high and it could reach $200 per ounce, predicts the CEO of one of the world's largest independent financial advisory and asset management organizations.

The bullish prediction from deVere Group's Nigel Green comes as silver breaks above $90 an ounce for the first time.

The rally follows fresh US inflation figures showing price pressures easing, with headline consumer inflation close to 2.7% and core inflation near 2.6%.

At the same time, labor-market momentum shows signs of fatigue after the latest payrolls data undershot expectations, reinforcing expectations that monetary policy moves towards easing this year.

Markets now focus closely on the next Federal Open Market Committee meeting later this month as investors look for confirmation that policy direction aligns with cooling economic signals.

Another powerful driver sits in the political sphere. Intensifying pressure on the Federal Reserve and public attacks on its leadership inject fresh uncertainty into monetary credibility.

Geopolitics adds further fuel. Escalating tension involving Iran, for example, heightens anxiety across energy markets and global security channels, lifting volatility and driving renewed demand for safe-haven assets. Each flare-up in the region reinforces the appeal of precious metals as protection against sudden shocks.

Trade policy uncertainty also weighs heavily on sentiment. A US Supreme Court ruling due today on the legality of President Donald Trump's tariffs carries real implications for global commerce, inflation expectations, and supply-chain costs.

Beyond macro and politics, silver benefits from powerful real-economy fundamentals.

Electrification, renewable energy expansion, and advanced manufacturing continue to lift industrial demand at a pace that strains supply. Investment flows rise at the same time as physical usage expands, a rare combination in commodity markets.

Looking ahead, deVere Group sees further upside from current levels.

The deVere chief executive concludes:

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