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Otavio (Tavi) Costa, portfolio manager at Crescat Capital, draws attention to the lag in silver prices, calling it one of the most compelling divergences in the market.
He notes that copper continues to lead and suggests the setup toward year-end could become notable. Costa adds that silver benefits from both industrial and monetary forces influencing copper.
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Costa has previously highlighted agricultural commodities breaking past a nearly two-decade resistance level as diesel prices and mortgage rates climbed, according to a recent note. He has also predicted a potential shift in Latin America's market leadership due to political factors, resource exposure, and relative valuations, as seen in his market commentary. These views come as he tracks divergences in metals and other asset classes.