Metals continue to rally this week, gold is up a fraction to $1,794, silver up 5.8% to $24.48, platinum up 2.5% to $1,059, and palladium up to $2,107.
For the 1-yr period, gold is down 5.9%, silver is down a fraction, platinum is up 21%, and palladium is down 13%.
Basel III is still in play, with additional London players being affected starting in January. Something to keep an eye on are the gold and silver exchanges in Shanghai and now in Russia. Russia has coordinated its exchange activities with the LME and has already seen 3x as much gold trading this year. As the world’s 2nd largest gold producer behind China, it is possible we could see spot prices move closer to physical prices as they begin to play a more significant role on the world stage concerning metals trading.
The inflation story is becoming entrenched, with some economists expecting inflation higher than the 2% targeted rate for the next several years. With supply chains struggling to provide retail products for the Christmas and holiday season, this could be a great year to give ounces of silver - as a gift that keeps on giving.