Analysts at GSC Commodity Intelligence have noted that Silver has a tendency to lag behind Gold for prolonged periods, but when it gains momentum, it can really take off. Historically, Gold tends to rise first and then Silver follows with a rapid surge, outperforming Gold in the process. This pattern may be repeating itself once again.
One of the recent instances of this trend was seen during the pandemic era, when the Federal Reserve implemented interest rate cuts to boost the economy. During an 18-month period, Gold prices increased by 39%, reaching over $2,000 per ounce, while Silver saw a significant spike, surpassing $30 per ounce with a 147% gain.
Many leading Wall Street banks are predicting that Silver’s impressive performance may continue in the second half of 2024, as the Federal Reserve is anticipated to further reduce interest rates.
Compared to Gold, Silver is still relatively inexpensive and has a lot of potential for growth. With this in mind, Silver could be the best trade opportunity at the moment and is definitely worth watching as we move into the second quarter of the year. Investors should consider the potential for Silver to catch up to Gold’s performance in the coming months.