A Commodity Super Cycle Are Investors Prepared

My main metals premise for 2021 is that gold looks good, silver looks better, and platinum looks best.

Goldman Sachs analyst Jeff Currie now refers to silver as “gold on steroids”.   

If that’s correct, and I think it is, can platinum be viewed as “gold on growth hormone”? I think so.

(Click on image to enlarge)

monthly gold versus platinum chart

My suggestion is to own some physical metal. Funds like PPLT-NYSE are another decent way for investors to get involved. 

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daily gold chart

I’ve strongly advocated buying gold and related items around $1788, and then booking partial profits near $1966.That’s been a great play.

It’s positive to see gold now rise above resistance at $1830.The next positive event would be a push through the resistance at $1875.

(Click on image to enlarge)

silver chart

Interestingly, the most recent arrival of gold at the $1788 buy zone happened with silver trading much higher than the first time.

That’s a nice sign of strength in the market.

For almost 30 years, I’ve followed the superb work of economist Steve Hanke.

Investors should take note of his prediction of a super cycle in the “commods”, and of his statement that 95% of what appears in mainstream media is false or irrelevant.

I’ve suggested that America (and the entire western world) is likely at a point in the commodity and inflation cycle much like the period of 1966-1970.  

Steve watches the M4 money supply, which is a broader calculation than M1 or M2. It includes T-bills and commercial paper.

The bottom line is that there is an M4 bull in a global markets candy store, and the charge is beginning. 

Rather than pinning childish hopes on politicians who are all obsessed with increasing debt and printing more fiat… investors need to allocate to commodities.

A tidal wave of inflation is likely coming, and it can build substantial wealth for the people who are correctly positioned.

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