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Why Commodities Like Silver, Oil And Gold Are Soaring Amid Inflation

According to the American Farm Bureau Federation, the cost of a typical Independence Day spread for 10 people jumped to $71.22 this year, up 5% from last year and a whopping 30% from five years ago.

That may not seem like much, but this inflation has a compounding effect on commodities. Research from Goldman Sachs shows that a 1 percentage point increase in U.S. inflation has historically led to a real return gain of 7 percentage points for commodities.

The reason I mention silver, oil and gold is because they were the top performing commodities in the first half of 2024. Let’s dive into what’s driving these trends and what they might mean for investors.

This post appeared first on ETF Trends.