Inflation and Precious Metals

February 11, 2022, 12:15 pm EST

Inflation and Precious Metals

Inflation brings almost all commodities to a higher price. Other tangible items are likely to lose their value. In the past, gold and silver are useful assets and investments during inflation periods. However, we do not see significant price movement for gold and silver in the past two years. Most likely, the popularity of cryptocurrencies draws more attention because they are much more volatile than any other investment. Many people think they can buy-low-sell-high and get rich quickly. 

The main difference between gold and bitcoin is that the former is a tangible asset and later is a virtual asset. Thus, we can think about which one will survive and do well during economic hardship. 

Gold and silver are still waiting for their moments to shine as shown in the featured chart for the weely view. Our portfolio gold position in Newmont Corp (NEM) +3% is already up 9% since December 2021. We are waiting for the day when the precious metals are ready to rally. 

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