The Potential for Continued Growth in the Silver and Gold Trade

The recent cooling demand from China and hawkish Fed commentary may have caused a temporary dip in commodity prices, but Wall Street experts are confident that the rally will resume, with potentially more pots of gold at the end of this market’s rainbow.

According to Jonathan Krinsky, BTIG’s chief market technician, the recent outperformance of silver relative to gold is a positive sign for the precious metal bull market. He believes that gold has yet to reach its final high, indicating that there is still room for growth.

Gold futures have already seen a 12% jump this year, while silver has surged by 27%. Copper, on the other hand, hit a record high of $11,000 a ton this week, driven by investor optimism about its role in the transition to renewables and EVs.

John LaForge, Wells Fargo’s head of real asset strategy, predicts that the commodity supercycle that began four years ago still has another six to 10 years of strong performance ahead. Bank of America’s head of metals research, Michael Widmer, also sees a bright future for copper, recommending investors to buy on any consolidation.

For those looking to capitalize on the bullish calls on metals, Bank of America suggests considering companies like Antofagasta, Freeport, and Teck Resources for copper, and Franco Nevada and Wheaton Precious for gold.

Overall, the sentiment on Wall Street remains positive, with experts predicting further gains in the commodities market in the coming years.