Metals Minute 45: Gold Leads The Way

Gold led the way higher for the metals in the past week, up 1% to $1,809. Silver was down 1% to $23.86, platinum was down 4.5% to $948, and palladium was down 11% to $2,022.

The 1-yr term has the metals down across the board, with gold down 7%, silver down 14%, platinum down 3%, and palladium down 16%. A possible investing opportunity

Some fireworks are beginning to go off in the Chinese property markets, with significant bankruptcy announcements expected today or tomorrow. There will undoubtedly be spillover to investors here in the USA. They are now destroying some of the buildings recently built in China due to overcapacity.

Record tax revenues have been collected here in the US, but plans to increase tax rates are on the table. Meanwhile, record spending has led to record deficits and an increase in national debt. Taxes affect interest rates and provide a strong impetus for owning gold and silver, especially at today’s sale prices.

Food prices worldwide have moved to the highest levels seen in nearly 60 years, implying that real inflation is not “transitory.” Unlike discretionary items, food prices impact everyone. It behooves us to store some savings in precious metals.