In the financial world, most people focused on precious metals pay close attention to the gold price. Silver bulls are rarer to find, but they are worth listening to. Mike McGlone is one of those traders who seems to focus on silver at this time.
Who is Mike McGlone?
Financial enthusiasts who keep a close eye on the precious metals industry and commodity markets may know the name Mike McGlone. The Senior Commodity Strategist for Bloomberg has built up a strong reputation in the financial sector. His main focus lies with broad investable commodity markets.
Prior to his tenure at Bloomberg Intelligence, McGlone garnered over 15 years of experience in the futures and commodity trading industry. He also made ample investments over his lifespan, both personally and in terms of his job. Companies he worked for include the Chicago Board of Trade, ETF Securities, S&P Indices, and ABN Amro, to name a few.
Mike McGlone the Silver Bull
Although one wouldn’t necessarily categorize McGlone among the Silverites of yore, it is evident that this analyst expects some big things for the silver market moving forward. Initially, he expected 2019 to be a breakout year for this precious metal, which was not far off the market. Prices of this commodity rose significantly, although the market has gone through a bit of a setback ever since.
Moreover, McGlone made that analysis in August of 2019 based on the overall market patterns. Silver had sustained key levels above the 50-month average for the first time since 2013. As such, there would be – under normal circumstances – ample room for an extensive bull run for this precious metal.
The big question is what will happen to silver following the coronavirus crisis. All markets have taken a beating ever since, yet precious metals tend to be far more resilient compared to other commodities. Given how the silver price used to be much higher several years ago, it is seemingly a matter of time until a new bull market emerges.
A Promising Outlook for Commodities
As alluded to in his statements in 2019, there are still plenty of market circumstances that can work in silver’s favor. The ongoing quantitative easing by the Federal Reserve will force investors and speculators to diversify their portfolio. Precious metals, including silver, will likely see some prominent momentum once this shift begins to take place.
It is also possible that the gold-to-silver ratio will undergo some major changes moving forward. Although gold recently rose to a new high compared to silver, it would appear that some change may occur a lot sooner rather than later. As of right now, the ratio sits at 109.56, yet has shown ample signs of drifting lower. It has come down a lot from the high of 124, thus it will be interesting to see what happens in the coming weeks and months.