t’s not hard to understand why metals are so appealing. In my last update I shared with you that the majority of my sales are to first time buyers. That tells me people are scared, concerned and just don’t know what to do to protect themselves from an out-of-control administration.
Oil is $80 a barrel. Inflation numbers today once again confirm what we all see when we fill up our car or buy groceries. I never imagined anything like this. Natural gas prices have doubled as we go into winter. I suppose the government will just decide that should be FREE for everyone also. People actually believe they should not have to pay rent, mortgages or really much of anything else. Why not free heat, free fuel, and anything else that gets expensive.
Every band aid the administration uses just makes things worse.
Have you tried to buy anything from a new car to a dishwashing machine? Get ready to wait for 6-8 months, IN THE USA! Ships wait at ports to unload, and Mayor Pete hasn’t a clue what to do. Millions over run the border and our VP does a video about space with paid child actors. What the hell is going on!
Well Today gold is up over $30, silver 60c and platinum $21.
Few wanted to buy when prices were low a week ago. Now the markets are finally responding to the craziness. Is this the start of a big move? I really don’t know. One thing I can tell you is that should we hit shortages in metals again you will see both spot prices and premiums take off. The US Mint is already cutting back delivery on Silver Eagles over a shortage of Planchets (blank coins to strike).
Yes, prices are up today but should a 2% bump stop you? Metals are still very reasonable and no where near the highs of last year, so buy when you can. No one can time the market.
SHIFT IN GOLD'S REACTION TO RATE HIKES
Over the past year, gold has gone down when ever the Fed talked about rate hikes or tapering the bond buying. Many clients have asked me why that happened. What I have seen in the past is what I explained would likely happen now.
To oversimplify it, gold would suffer as interest rates went up until we reached a point where higher rates are overshadowed by higher inflation. Today’s inflation numbers are higher than expected once again. Now inflationary factors will cause growth concerns. When inflation is higher and growth slows we see stagflation. Gold thrives at times like these. Gold will challenge the $1800 mark, maybe more than once and could eventually challenge the highs from last year of over $2000.
I have a few items you may want to consider adding to your holdings.