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. Meanwhile, the same trigger caused stocks and bonds to decline by 3 percentage points and 4 percentage points, respectively.

This data supports the potential of commodities as an inflation hedge. In times of rising prices, tangible assets such as silver, oil and gold often retain their value better than paper assets.

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.

Leading the charge is silver, up close to 22.5 percent in the first half. The “poor man’s gold” is proving its worth, driven by a global supply deficit and increasing demand. Back in January, the Silver Institute forecasted that global silver demand will reach a near-reco