Metals Minute 25: A Good Week for Precious Metals Diversification

It has been a good week for diversification, with both gold and silver down less than 1%, to $1776 and $26.08, platinum up 1% to $1221, and palladium up another 4% to $2953, as auto manufacturing comes back online - increasing the demand for PGM metals.

For 1-yr we have gold up 4%, silver up 72%, platinum up 58%, and palladium up 54%.

Taxes and inflation are on the way up, and both conditions should benefit the metals. Taxes are being raised on various assets, including cryptocurrency. But the greatest threat could come not from increased rates, but from increased enforcement.

Hidden in all the stimulus funds being sent out to American families are billions sent to the IRS for increased surveillance and enforcement activities, targeting not only the wealthy but anyone who uses cryptocurrency in any fashion. We discuss this further in this week’s article.

For the first time in a long time, the taxes on gains made in the metals will be among the lowest for any asset, for many Americans.

Keep your eyes on the #SilverSqueeze movement, which is alive and well. Increasing numbers of investors are taking physical supply out of the system.