Silver Rally Shows Why Real Yields Matter More Than Inflation

Silver’s rebound this year has been driven less by inflation fears and more by shifting expectations for interest rates. After an auction of U.S. inflation-protected Treasury bonds in late July set a real yield high enough to rival the pretense of safe assets, silver began reversing and gained 11% in the following ten days. The article links the move to a weak jobs report and a second straight month of cooling inflation that sharply reduced odds of a rate rise. Silver trades near $65.32 an ounce, while gold is around $4,379 and the gold-silver ratio is 67.0. It also cites a July 23 ten-year real yield of 2.438%.