“Silver sub-$30 an ounce is the most attractive macro-economic asset in the world today,” Tavi Costa, partner, and portfolio manager at Crescat Capital, said in a telephonic interview with Kitco News, adding that the metal is facing the most significant supply and demand mismatch in recent history.
Key quotes
Investors are already starting to see that inflation is out there, and that’s why I like hard-assets so much.
Silver, gold, and oil look cheap. It’s ridiculous people are staying on the sidelines in this environment.
I see a lot of supply constraint issues. No one is spending any money on exploration, the ones spending money on infrastructure.
We see a culmination of a fundamentally cheap story along with the supply problem of the whole industry. Along with the massive central bank balance sheets that are here to stay, I can’t think of a way where miners in the next three years won’t be going higher.
The market-based measures of US inflation expectations such as the 5-year, 5-year forward inflation expectations, and the 10-year breakeven rate have increased to multi-month highs in recent days. The 10-year breakeven rate now hovers well above the Federal Reserve’s 2% inflation target.
Silver is currently trading at $27.72 per ounce, representing a 0.56% gain on the day.
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