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Metals Minute 175

Explosive Rally Ahead: Oil and Metals Skyrocketing Higher

February 09, 2023249 view(s)

Gold has edged lower over the last week, down 2.6% to $1,885. Silver is 4.9% lower at $22.64, with platinum 3.3% lower at $1,005 and palladium down 3% to $1,684.

From a year ago today, gold is up 3.2%, silver is down 2.4%, platinum is 3.5% lower, with palladium off 25.3%. What looks like a global recession is clearly impacting demand for the white industrial metal (palladium) needed for automobile production.

The World Gold Council has corrected a previous report stating that world central banks have purchased the most gold “in decades.” The revised report indicates that gold buying reached the highest levels “on record”, in 2022.  Gold buying at these levels has prefaced a shift in the global financial system in years past and provides further support for the “financial reset” narrative.

The price of oil impacts future inflation levels in many sectors of the economy. While recessionary conditions often signal a lower oil price due to lessened demand for oil, supply constraints are indicating higher oil prices are likely as the economy slows.  This is similar to the stagflationary conditions at work in the mid-1970s that saw gold and silver increase 5-8x in just a few years. It is hard to store oil, but wise to store precious metals.

 

About the Author: Bill Stack

 

Financial Analyst of 29 years and Gulf War Veteran, Bill has been helping families nationwide keep their money safe and growing since 1993. As a Certified Financial Fiduciary® and a RICP®, Bill specializes in helping protect your assets with growth potential.

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