PM Demand... as Inflation Hedge!, page-2

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WealthEmpire61

489 Posts.

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14/05/21

10:39

Post #: 53172350
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Originally posted by Poet: ↑

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.
‍
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

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how about you discuss the water permit that's taking longer than the drilling permit while the SP continues to fall? ahhhh penny dreadfuls at their best!

ICG Price at posting: 12.0¢ Sentiment: None Disclosure: Not Held
5 Upvote

0 Great analysis

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