Metals Minute 88: Tax Deadline Day
Precious Metals were higher in unison over the weekend, with gold exceeding $2,000 and silver exceeding $26 in the early morning hours.
This should be music to our collective ears, but not in the current environment. While we are certainly glad to see precious metals moving higher, the reasons leave much to be desired.
We are seeing thousands of ships stalled off the coast of China, unable to be loaded with goods before heading back to the ports of LA. From overcrowding at Los Angeles ports, supply chain disruptions could soon become disruptions from no supplies to unload, leading to more shortages and higher prices.
Due to the Russia-Ukraine conflict, natural gas spiked over the weekend to a new record high amidst looming fertilizer shortages beginning to toll on planting season here in the United States. This does not bode well for future food stocks worldwide, including in the U.S.
The reasons for storing some savings in gold and silver become crystal clear in times like these. With official inflation rates recently reaching 8.5%, it is essential to have some savings in gold (up 9.5% YTD) and silver (up 12% YTD).