Precious Metals Surge on Secular Bull Market Drivers

Investors in precious metals have experienced a wild ride since 2024, followed by a sharp reversal after the war with Iran began in February. The market for these metals is dwarfed by bonds and stocks.

Before the recent pullback, gold prices had surged 385% from their lows reached in 2016, while silver prices rose over 660%. However, despite this impressive growth, the precious metals market remains relatively small compared to other markets.

The author of the article emphasizes that the macro environment is a crucial factor in driving demand for precious metals. Nevertheless, he argues that the most significant driver of any commodity supercycle lies on the supply side.