We've talked about ICG and Cu demand but let's talk about PM...

We've talked about ICG and Cu demand but let's talk about PM demand whilst we wait (aka waiting room).

Sure the market is wobbly atm but as @JandJ suggested the great rotation could be happening as we speak. Why? Inflation... the genie is out of the bottle ie this month's US adjusted inflation was approx 4% ie 13 year high!

The return of inflation?

· Money printing/money supply growth.

· Public debt growth has accelerated.

· Bank lending has increased.

· Pent-up consumer demand unleashed.

· “Reshoring” and supply side issues.

· Central banks’ new approach to inflation.

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How can investors hedge against inflation?

· Equities can rise with inflation but face risks from high valuations and nominal rate hikes.

· Bonds are negatively impacted by inflation.

· Real assets and commodities offer a hedge against inflation.

· Gold historically thrives during inflationary periods.

Check out this article for a good analysis of the turning point we're at and the long-term PM upcycle that is before us.
https://media.bakersteelcap.com/articles/gold-and-inflation-a-turning-point

A picture is worth a thousand words...







Lastly, a reminder.... Silver has NEVER failed to do an all-time high after gold did!

So that's the macro picture but what's the micro picture... and where can we invest in future PM T1 supply?

#ICG #Riqueza #MacCreek #EastTennantCreek #Arunta #OB #OA #OC

Poet