The precious metals market seems to be waking up that price inflation, driven by central banks led by the US Federal Reserve, is becoming an uncontrollable problem.
Raw material price inflation is rising across the board. Over the past year, the entire commodity complex, from copper and steel to crude oil, cotton and soybeans, has grown steadily. The Thomson Reuters / Core Commodity (CRB) Index is up 70% since May last year.
While price inflation affects goods and services we buy on a weekly basis, the brunt of commodity price inflation is yet to come.
The situation will be aggravated when the stock market, including cryptocurrencies, the real estate market ceases to "absorb" most of these printed candy wrappers, and what has already been invested will be destroyed in these markets or flow into real goods.
At some point, central banks are unable to help this inflationary reality in gold and silver prices. Probably they can no longer.
If you look at the graph of changes in the world gold price, we can say with confidence that, according to technical analysis, there was a “double bottom” in March, when the price of the yellow metal fell below the 1700th mark to 1684-1685 levels.
A figure usually means that after that a new phase of growth begins, which we have been observing for a month and a half. Gold has steadily passed up the 1850 level and is moving towards the 1900 mark.
Precious metals are one of the best places to store your savings in times of economic or political disaster.
Gold and silver enhance stability during this period. While they do not generate interest or dividends, they are not subject to inflation like fiat currencies.
Submitted May 18, 2021 at 04:58AM by Critical_Thinkin8 https://ift.tt/3oq9eGA
