After continued slamming in the paper markets, the metals continue to recover this week, with Gold up 4/10% to $1867, Silver up 1% to $25.74, Platinum up 3.2% to $1114. Palladium was down 4/10% to $2426.
For the 1-yr time frame, Gold is up 19%, Silver up 43%, Platinum up 10%, and Palladium down 2%.
There is building momentum for the metals, with most showing strength in the face of unprecedented money creation, which we discuss in detail in this week’s article. This is in spite of the attempts to take down gold and silver in the paper markets.
Something else to keep an eye on is inflation that is building across the commodities sector. We are seeing increases in grain, lumber, and other commodities that will filter out to other sectors of the economy.
The question we have to ask ourselves, is do we want to save in a currency that is devalued against the cost of living, or in gold or silver that tends to keep up with the increased cost of living?
As mentioned in “The 7.0 Solution”, the amount of silver needed to purchase a loaf of bread 2300 years ago will still purchase a loaf of bread today.