The Great Reflation: Why the silver and gold trade has further upside

There may be more pots of gold at the end of this market's rainbow.

The commodity frenzy took a breather last week as cooling demand from China and hawkish Fed commentary prompted investors to cash in on the recent surge in prices.

But despite recent declines, Wall Street pros remain focused on the long-term story in commodities, telling Yahoo Finance that the fundamentals are still strong and they’re confident the record-setting rally will resume.

“There’s reason to believe the 'Great Reflation trade' has more room to run,” Jonathan Krinsky, BTIG's chief market technician, told Yahoo Finance.


Krinsky pointed to the recent outperformance of silver relative to gold as an indication of a “strong, healthy, precious metal bull market.” He remains bullish and thinks gold has yet to reach its final high, noting, “There's nothing in the price chart of gold that suggests a final top is in.”

So far this year, gold futures have jumped 12%, compared with silver's 27% gain.

And copper, which has outperformed both silver and gold in 2024, pushed above $11,000 a ton for the first time ever last week. The metal has caught fire with investors amid bets it will play a pivotal role in the transition to renewables and EVs, along with data center buildouts due to AI.

“What you really have is a commodity supercycle that started four years ago … and you probably have another six to 10 years left of really strong performance,” Wells Fargo head of real asset strategy John LaForge said.

That bullish sentiment appears to be gaining traction on Wall Street.

Bank of America’s head of metals research, Michael Widmer, told Yahoo Finance that copper looks “very strong” on a fundamental basis and investors should use any consolidation as a buying opportunity.

“I think the structural bull case for the copper market remains in place," Widmer said. "This is firmly a buy-the-dip market."

Widmer and his team see copper prices rallying more than 25% from current levels in 2025 to reach an average of $12,000 per ton.

For investors looking to jump in and play the bullish calls on metals, Bank of America named Antofagasta (ANTO.L), Freeport-McMoRan (FCX), and Teck Resources (TECK) among its top copper picks, alongside Franco Nevada (FNV) and Wheaton Precious (WPM) as its recommended ways to play gold.

Economic growth in the US also remains supportive to commodities demand. Deutsche Bank chief US economist Matthew Luzzetti shared his economic outlook on the latest episode of the Opening Bid podcast. Listen in below.

Seana Smith is an anchor at Yahoo Finance. Follow Smith on Twitter @SeanaNSmith. Tips on deals, mergers, activist situations, or anything else? Email

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