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Silver breaks with tradition as structural shortages take hold

The silver price appears to be breaking with its traditional pattern. Where the metal has historically followed gold with a delay, silver is now moving more independently and at a faster pace. According to market participants, the recent rally is less a reaction to geopolitical tensions than the result of structural changes in the balance between supply and demand.

Chart of the week: you wouldn’t expect it, would you

An insignificant Danish pension fund dumps all its US Treasuries. Financial media eagerly jump on this headline, because that is not something most investors would just expect. About the underlying structural cause, which has little to do with a president gone off the rails, you hear a lot less.

To European investors ‘sell America’ is noise

Talk of the need to lower exposure to U.S. assets grew louder this week, but asset managers in Europe are not abandoning the country. Recent market moves, they argue, do not justify a strategic shift away from the U.S., with equities rebounding toward record highs after signs of progress on Greenland at talks in Davos.