Macro: Sandcastle economics
Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.
2024 has been a significant year for investment metals, with gold receiving substantial attention. The demand for gold has been driven by various factors, including the recent rate cut in the US, which has made it cheaper for investors to buy gold due to lower funding costs.
Interestingly, while gold has seen a 25% increase this year, silver has performed even better, rising by around 27%. Silver often mirrors gold's movements but in a more exaggerated manner, meaning it can rise faster but also fall more sharply. Recently, silver experienced a significant correction, influenced by a dip in demand from China over the summer. However, this situation is stabilizing.
As we move into the final quarter of the year and approach the US presidential election, there is potential for silver to outperform gold. This is partly because the dollar is expected to remain weak, supporting gold prices, and silver, currently priced just above $30, is still far below its 2011 record of $50. Investors looking to enter the market for investment metals might find silver more appealing due to its lower price relative to its historical highs.
In summary, 2024 has been a remarkable year for precious metals, with continuous record highs in gold and significant gains in silver, making it a notable period for investors in this sector.