The inflationary pressures of currencies printing without discretion is taking its toll around the globe. Commodities of all sorts are SKYROCKETING, thus causing boom and bust cycles, turbulence, mayhem, and outrage in many parts of the world where most people live at the margin. Americans are about to be squeezed at the margin as well as gas and oil prices and industrial and agricultural commodities all go through the roof. Nowhere is this more evident than in the silver price.
Silver is both an industrial metal and a financial metal. An industrial metal responds very well to the inflationary pressures of the market, and the fact that central banks are printing money like there is no tomorrow is very inflationary. Financial metals respond to chaos, uncertainty, change, turbulence, and turmoil in the political, geo-political, economic, and financial sectors. Well, well, well…it just so happens that silver is both an industrial metal AND a financial metal, and we are seeing the collision of a perfect storm of financial chaos intersecting with inflationary pressures. On Friday, we saw silver increase 3.2% IN ONE DAY! Silver is up 32.8% YEAR TO DATE, and it’s APRIL!
Gold hasn’t seen the massive growth that silver has, but it is still on pace for its average of 30%+ per year growth that we have been used to for the last decade. Remember, gold was $260 an ounce in 2001. Ten years later, it shot up to $1,475 (or up 467%). WOW.
Well, the global situation is becoming even more turbulent, so I encourage all of you to make sure your paper/tangible asset ratios are what they should be to weather this storm because the world around us will get worse before it gets better, and the precious metals complex is poised for MASSIVE, EXPLOSIVE GROWTH!
