Metals were mixed over last week, with gold continuing to climb an additional 1/2% to $1,803, silver off 1% to$24.23, platinum down 3% to $1,026, and palladium down 4% to $2,014.
Since a year ago today, gold is down 5.5%, silver is down a fraction, platinum is up 16%, and palladium is down 14%.
The inflation story continues to build, with input costs such as feed, herbicides and fertilizer rising for the agricultural sector, often translating into higher food costs in the grocery store.
Proof of stagflation is also becoming more evident, with projected 3rd Qtr GDP growth being revised downward from +6.2% in August to 0.2% today. Real GDP growth could easily be a negative number considering the trend.
Another positive for precious metals is the new plan to tax unrealized gains. The new “Billionaire Tax” initially affects people with earnings as low as $50 million taxing “Tradable Covered Assets,” which does not include physical precious metals. We could see a new influx of precious metals investors come in, trying to escape the new tax if it becomes a reality.
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byBill Stack