Thoughts on SLV and the 'inflation hedge' narrative
Watching $SLV today, up to 54.54 and even hit 54.69 earlier, there's obviously renewed interest. The inflation hedge narrative is strong, and a lot of the talk I'm hearing revolves around a flight to tangible assets as central banks continue to print and devalue fiat. On paper, it makes sense, but I'm struggling with the consistency.
Historically, silver's performance as a reliable inflation hedge has been spotty at best. We see these surges, then long periods of underperformance. Is it truly a hedge, or just another commodity speculative play with a convenient narrative attached when the macro winds blow a certain way? It feels like we often confuse correlation with causation in these situations. What are your thoughts? Am I missing a key piece of the puzzle here, or is the 'inflation hedge' simply good marketing for a cyclical asset? Push back on this.
It's always entertaining to watch the 'inflation hedge' narrative dust itself off and trot out for another run. One almost wonders if inflation is less about economic reality and more about giving certain assets a good excuse to have a moment in the sun.