RE:What's happening now. First: capital is flowing to USD as risk increases in EM
Second: Shortages raise metal prices. -
silver and copper shine bright as inflation threat grows
"Analysts have noted that rising inflation fears have sparked renewed interest in base metals; at the same time, depleted inventories as demand picks up have created a significant supply/demand imbalance. Copper and silver have both seen a rise in bullish interest as investors look for inflation hedges.
Analysts noted inflation fears are at their highest level in 16 years, indicated by five-year breakeven rates. The breakeven rate is the difference in yields between bonds and Treasury Inflation-Protected Securities (TIPS). The difference represents the inflation rate needed to equalize their returns. As of Friday, the five-year breakeven rate was 2.91, near the highest level since 2005."
Hedge funds avoid gold, but silver and copper shine bright as inflation threat grows | Kitco News
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