Insights on Inflation & Precious Metals

Despite heavy paper selling, all the metals are higher this morning than our last weekly numbers update on Wednesday. The Dollar is also higher against the Euro, with pensioners across Europe having a terrible time losing purchasing power due to inflation in the food and energy sector.

Meanwhile, the Dollar is lower in currencies that are more closely connected to gold, such as the Chinese Yuan or Russian Ruble. The Ruble is now worth more than before the sanctions due to a stated link to the price of gold.

The recessionary slowdown has begun here in the United States, with the housing and mortgage business showing lower demand amidst slightly higher interest rates. Inventories on automobile lots are slowly rebuilding, with prices easing over the last three weeks. The level of indebtedness of the average consumer, along with inflation in other sectors such as food and energy, has reduced disposable income for higher mortgage payments and automobile purchases.

We are entering a period of inflation when it is imperative to own precious metals to protect your future purchasing power. Thanks for tuning in! We will update you next week on any new developments over the weekend.