Precious Metals & Gas Prices: Insights

Gold and silver have moved higher since the update on Wednesday, with platinum and palladium off just a little. Ongoing developments in the energy markets will help propel all the metals higher, I believe, and here is why.

There is a shortage of diesel fuel building in Europe, as supply constraints related to the Russia-Ukraine conflict complicate fuel flows between Russia and Europe. But these constraints do not stop at Europe but also involve the United States. We usually import diesel from Europe and Russia, but many of the ships used for this are carrying diesel back towards Europe from New York harbor.

We have exported 1.4 million barrels of diesel to Europe in the last two weeks, while it is in short supply here in the United States. Short supply is partly why diesel is at a record high price in the United States. At $5.13 per gallon ($6.22 in California), it impacts supply chains for other goods, as they cannot be transported at an economical price.

The other alternative to goods not being shipped is higher prices for shipped goods. Many “$1.00” stores have already become “$1.25” stores. Best to own some savings in gold and silver, to keep up with inflation.