Metals Minute 76: Precious Metals and Supply Chains

This morning, metals are sharply higher as the markets digested news of further inflation and supply chain disruptions. Reports of record increases in cold-rolled steel prices across Europe can have an impact in everything from automobiles, containers, construction, and agricultural manufacturing.

Higher food input costs due to fertilizer shortages also imply that record food prices are likely headed higher, with the UN expecting a further 22% boost in food costs over the next year.

We also have reports of further impacts to American investors and retirees from the sanctions in Russia, as actions taken by American corporations begin to affect revenue streams here in the United States. 847 Mcdonald's locations, representing 9% of worldwide corporate revenue, have been shuttered in Russia. In response, Russia has a proposal to turn these restaurant outlets into a Russian franchise called "Uncle Vanya's," serving similar products sourced in Russia at lower prices for the local populace. This would remove $50 million per month from Mcdonald's revenues, potentially damaging American investors and retirees. Be on the lookout for similar possibilities from other sanctions.

Meanwhile, silver is set up to outperform over the next 1-2 years potentially; details coming in an upcoming article.