Metals Minute 48: Price of Gold and Mining

Metals Minute: Price of Gold and Mining

Metals Minute 48: Price of Gold and Mining

October 6, 2021 303 view(s)

While many are focused on preparing for new energy solutions, the lack of attention to old energy solutions has led to energy shocks worldwide. It is hard to imagine that oil slipped down to negative $40 per barrel just last year but is now nearly +$80. Meanwhile, prices for natural gas and coal also see prices increase dramatically as the world scrambles for energy.

The price of these energy sources has implications for gold and silver going forward. The base level of support for gold and silver has long been near the cost to get them out of the ground. Mining is an energy-intensive endeavor, and where energy prices lead, gold and silver are soon to follow.

Even the rates to ship energy sources such as coal are nearing record levels, which implies inflation is likely to spread to most sectors of the economy.

For the week, gold is up 1% to $1767, silver is up 2% to $22.47, platinum is up 3% to $989, and palladium is down 2% to $1883.

The 1-yr numbers have gold down 6%, silver down 3%, platinum up 15%, and palladium down 20%.