The current economic downturn is best described as hybrid and structurally driven. It leans heavily on demand constraints, though it is triggered and complicated by ongoing supply shocks.
Global bond yields are reaching frightening levels due to the continued war in Iran and the effective closure of the Strait of Hormuz. Continued high oil prices and the threat of reverberating inflation are causing investors to demand higher yields on government bonds.
Silver had a phenomenal 2025, more than doubling from around $30/oz to above $70 by late December, and the rally continued into the new year.
