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Why Silver and Gold Trading Has Even More Advantages
There may be more pots of gold at the end of this market’s rainbow.
The raw materials frenzy eased this week as demand from China cooled and Fed’s aggressive comment led investors to profit from the recent price rise.
But despite the recent declines, Wall Street professionals remain focused on the long-term story of commodities, telling Yahoo Finance that fundamentals remain strong and they are confident the record recovery will resume.
“There is reason to believe that the ‘big reflation trade’ has more room to run,” Jonathan Krinsky, chief market technician at BTIG, told Yahoo Finance.
Krinsky points to silver’s recent outperformance relative to gold as an indication of a “strong and healthy bull market in precious metals.” He remains bullish and believes gold has not yet reached its final high, noting: “There is nothing on the gold price chart to suggest that a final top is near.”
So far this year, gold futures have jumped 12%, compared to silver’s 27% gain.
And copper, which surpassed silver and gold in 2024, surpassed US$11,000 a ton for the first time this week. The metal has caught fire among investors amid bets it will play a key role in the transition to renewables and EVs, along with data center constructions due to AI.
“What we really have is a commodities supercycle that started four years ago… and there’s probably another six to 10 years of really strong performance left,” said Wells Fargo head of real asset strategy John LaForge.
This bullish sentiment appears to be gaining traction on Wall Street.
Bank of America head of metals research Michael Widmer told Yahoo Finance that copper looks “very strong” on a fundamental basis and investors should use any consolidation as a buying opportunity.
“I think the bullish structural scenario for the copper market remains in place,” Widmer said. “This is firmly a buy-dip market.”
Widmer and his team see copper prices rising more than 25% from current levels by 2025, averaging $12,000 per ton.
For investors looking to get in on the action and bet on bullish metals options, Bank of America has named Antofagasta (ANTO.L), Freeport-McMoRan (FCX) and Teck Resources (TECK) among your top copper picks, alongside Franco Nevada (FNV) and Wheaton Precious (WPM) as recommended ways to play gold.
Economic growth in the US also continues to support demand for raw materials. Deutsche Bank’s chief US economist, Matthew Luzzetti, shares his economic perspective on the latest episode of the Opening bid podcast. Listen below.
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Sean Smith is an anchor at Yahoo Finance. Follow Smith on Twitter @SeanaNSmith. Tips on business, mergers, activist situations or anything else? Email seanasmith@yahooinc.com.
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