From a year ago today, gold is up 8%, silver is up 13%, with platinum down 4%, and palladium 42% lower than a year ago today.
Last week we discussed the ongoing impacts of higher energy prices causing inflation to trend higher again, with oil up 20% over the last month. This tends to minimize the risks of investing in precious metals, as it acts as a floor underneath metals prices due to the energy-intensive nature of mining and refining precious metals.
This week we highlight the upcoming BRICS Summit and what this means for precious metals. While it is not known exactly what will be announced next week, the trends for precious metals are generally positive. The BRICS nations have been laying the groundwork to depart from the dollar system of trade by creating their own version of the World Bank, IMF, and Swift Bank settlement system.
Central banks have been purchasing gold in record amounts, which further sets up the ability to reference gold as a trading mechanism instead of dollars.
These trends point to higher gold prices and a further devalued dollar, making owning precious metals a necessity for the days ahead.