Source: Unigestion, Bloomberg, as of 10 June 2021
The current macro environment and momentum that we are observing is outstanding, as pointed out by both our proprietary Nowcasters and Newscasters, which confirm above potential growth. We expect this strong macro environment to be with us for some time.
To get a feel for the macroeconomic recovery we can look at the gold/silver ratio. Silver, despite also being labelled a precious metal, has a much larger industrial usage than gold. In periods of recession or uncertainty, silver therefore underperforms and gold tends to outperform thanks to its safe haven appeal. In line with our macro scenario, it is therefore not surprising to see how much the gold/silver ratio spread has collapsed from its record levels post the Covid-19 crisis.
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