Central banks are steadily accumulating gold. This action lays the groundwork for a new precious metals supercycle. However, analysts like Rashad Hajiyev suggest silver could be the real star, eclipsing gold. This scenario highlights silver’s potential in the metals supercycle.
Hajiyev, a market strategist, recalled the 2020 rally. During that period, silver surged nearly 60%. Gold, in contrast, only rose 15%. “For every 1% gain in gold, the silver price added 4%,” he explained. Currently, silver is trading at $48.13. This represents an 11% drop from its peak of $54.45 in October. Meanwhile, Hajiyev observes a bullish divergence in gold. Gold miners (GDX) rose 1.6% while the spot price fell. The expert projects that gold could quickly reach $5,000 per ounce.
The global macroeconomic backdrop supports this thesis. The US Federal Reserve is expected to announce another rate cut today. This expands global liquidity. Kevin Rusher, founder of RAAC, noted that the recent gold rush is not just about geopolitics. It is about a structural diversification away from US dollar assets. Rusher states this trend of seeking real assets will continue. Metals will anchor portfolios as fiat currencies weaken.
Will tokenization anchor the value of metals in the new economy?
The tokenization of real-world assets (RWA) is another transformative force. Kevin Rusher highlighted the role of this technology. “Gold… becomes verifiable, yield-bearing collateral,” he stated. This collateral is more stable than other digital assets. Rusher believes tokenization will deeply integrate metals into the digital economy. This mechanism could increase demand and utility for metals like gold and silver.
The stage is set for a historic phase in precious metals. Central banks continue to buy gold as structural support. Furthermore, global monetary policy is becoming more flexible. Investors are now looking toward tokenized stores of value. If history repeats, silver’s potential in the metals supercycle could materialize. Silver, known as “gold’s high-beta cousin,” could lead the next major market rally.
