Metals Minute: Basel III and Inflation

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Metals Minute: Basel III and Inflation

June 9, 2021
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Gold was flat for the week, down a fraction to $1,903. Silver was down 1% to $27.86, platinum down 2% to $1,168, and palladium was down 1% to $2,840. For the 1-yr period, gold is up 11%, silver is up 59%, platinum is up 40%, and palladium is up 45%.  



For those looking for inflation protection, all of these metals exceeded the inflation rate for a year, some by a great deal. Inflation continues to be the headline story right now, and keep an eye on food inflation. We have serious drought conditions across the western US and Europe, impacting food supplies in the coming months. Across the Middle East, food price inflation is near the levels attained during the Arab Spring riots.

While the paper dollar price of grains continues to rise, the silver price of grain has been reasonably consistent since 300 AD. One of the best ways to defeat the ravages of price inflation is to store a portion of your savings in precious metals.

We also have the Basel III banking rule implementation approach that has been impacting gold upwards, the silver squeeze movement assisting the rise in physical silver, and downward international pressure on the dollar's value.

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