:
“The path of silver is higher because the U.S. dollar will continue to lose value. The prices of monetary metals are inverse to the dollar.”
Monetary Metals vs the DXY
Saefong notes that the dollar index has continued to drop in the past months while the monetary metals, gold and silver, continue to shine.
“Over the past three months, both gold and silver gained while the ICE U.S. Dollar index, a benchmark for the international value of the dollar, lost over 8%.”
To understand how the dollar index and gold prices are correlated we highly recommend watching our podcasts with Brent Johnson, explaining the Dollar Milkshake Theory and his discussion of whether or not the DXY will continue to fall.
Barron’s Article
The full article in Barron’s discusses what experts in precious metals and global macroeconomics think of silver’s recent performance, and if it spells good news or trouble ahead for investors and the broader global economy. Readers who would like the read the full article can view it here.
