Metals Minute 53: Veterans Day and Precious Metals
Last week we informed our readers of the likelihood that the gold and silver smash down before the FED announcements on Wednesday would likely only last until the comments were evaluated by investors. That was certainly the case, and we hope you were able to take advantage of the buying opportunity. Both gold and silver have moved higher than before the price smash, with most gains likely still ahead of us.
For the week, gold is up 3.3% to $1835, silver is up 4.6% to $24.30, platinum is up 3.5% to $1070, and palladium is up 1.9% to $2060.
Over the past 1-yr, gold is down 2.3%, silver is up a fraction, platinum is up 20%, and palladium is down 16.72%.
The latest information from Treasury Secretary Janet Yellen is that inflation will not reach 1970’s levels, and will return to 2% by next year. But as our readers know, the way inflation is calculated today removes many of the inputs used to calculate inflation in the 1970’s. According to the old calculations, we have already reached 1970’s-style inflation. The accompanying recession may send gold and silver to the moon over the next few years, if history is any guide.