Week of March 6, 2022

Selling in Equities Finding its Way to the Safe Haven of Precious Metals

The war in Ukraine continues to dominate the headlines and drive markets across the board. Gold is now threatening to topple the all time high while knocking on the $2,000.00 per ounce door. All this while the Dow Jones Industrial Average is down 4,000 points from its 52-week high and oil tops $130 per barrel for the first time since 2008. Clearly some of the selling in the equities market is finding its way to the safe haven of precious metals. While there is clearly support for Gold because of the war, the driving force before the conflict was inflation at home and abroad. More so than any other commodity, Oil prices affect the price of consumer goods, manufacturing and services across the board. Gasoline prices at the pump increased by 45 cents per gallon nationwide in just the last week. Inflation is not transitory as the Federal Reserve Chairman indicated over a year ago. And one should get the popcorn ready when the next Board of Governors meeting convenes and the excuses for delaying rate hikes start flying. The floor for the yellow metal appears to be in safely above $1,900.00 and could be providing a once in a lifetime opportunity as we speak. 

Physical Silver Acquisition is Soaring

Silver is not as strong as gold firmly in the mid-$25 range on the spot market, but physical acquisition is soaring. While $2,000.00 is out of reach for some middle-class investors, $40 for a Silver American Eagle is still considered affordable and is the consensus price with major internet dealers. The spread between the physical price and the spot price continues to grow as demand continues to drive. Silver will “coat tail” Gold as dealers report first time a larger number of first-time precious metals customers is on the increase. Silver serves as an entry point to the market as the educational process steers first timers toward Gold.


Sanctions Have Nothing to do With Kremlin Exports

As mentioned above, Oil is approaching all time highs and shows no signs of slowing. Following the crippling policies of the current administration on the oil industry and specifically production, stateside refineries were forced to seek offshore suppliers to keep production and employment going. The United States imports over 600,000 barrels of oil per day from Russia. With all the sanctions that have been levied on the Kremlin following the invasion of Ukraine, none have anything to do with energy exports which account for over 50% of the income Vladimir Putin relies on to fund his aggression. The same amount of oil is required daily to meet demand. Does it really matter where the supply comes from? Lawmakers are calling on the White House to release the restrictions placed on domestic oil to further deter Russian aggression by allowing U. S. producers to satisfy domestic demand and assist Europe in weening from Russian energy purchases. Until this policy reversal, enjoy the ride to $10 gasoline.



Oil Prices, War, and Inflation are Driving Commodities to New Heights


All precious metals dealers are experiencing increases in sales as the “perfect storm” of soaring oil prices, war, and inflation drive commodities to new heights. GMRgold has taken measure to ensure that your needs are met with our expert team of portfolio managers and support staff. There has clearly never been a more important time to diversify your investments with the insuring qualities of Gold and Silver. There are no needs too small or too large. You will be comfortable with the educational experience offered to the first-time purchaser as well as the seasoned precious metals investors. Reach out to your representative today at 877-795-9585 to begin the process.