Metals Minute 44: Stagflation Trend

We had an incredible investment opportunity in the metals earlier this week, from which we have already partially bounced back. There was the major Chinese Evergrande bond failure and healthy bond issuance by the U.S. Treasury, in which gold and silver were competing. Lots of paper selling at market open drove the prices down, while central banks scooped up more physical gold.

For the last week, we have gold down 1% to $1795, silver up a fraction to $24.10, platinum down 3% to $993, and palladium down 10% to $2,276. For the 1-yr time we have gold down 7%, silver down 10%, platinum up 10%, and palladium down 1%.

Stagflation is the trend of the moment, which bodes well for gold and silver moving forward from here. Meanwhile, there are problems in the high-yield bond sector, with 85% of those bonds offering a negative real yield in the marketplace today - another plus for precious metals.

The President just announced a new goal to produce 45% of our electricity using solar power. If we only moved to 10%, it would increase silver demand by 200 million ounces. Extremely bullish for silver from here.