Commodities supercycle or bull rally? Analysts point to silver as the one to watch – by Anna Golubova (Kitco News – February 26, 2021)

(Kitco News) – Are we on the verge of another commodity supercycle or just a post-pandemic rally after some major supply restrictions? A number of firms favor “supercycle,” and JPMorgan said signs of inflation support the view.

“We believe that the new commodity upswing, and in particular oil upcycle, has started,” the JPMorgan analysts said. “The tide on yields and inflation is turning.”

The idea is that the new supercycle will be driven by the post-pandemic recovery, inflation, accommodative monetary and fiscal policies, a deteriorating U.S. dollar, and a global fight against climate change.

JPMorgan referred to what’s coming as the fifth commodity supercycle, noting that commodities went through four supercycles during the last century with the last one running out of steam in 2008 after 12 years of gains.

For metals prices, this is a major development as investors are already seeing commodities like copper, nickel, and oil surge.

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