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-pointA 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
