Magflation: An Unexpected Gold And Silver Driver

If the printing press and spending spigot remain unchecked, then inflation is more likely. Excessive demand, loss of confidence, and increased money velocity (turnover) lead reliably to the inflationary door.

A few asset classes like the stock market and most real estate sectors initially keep up but later on lag severely, as purchasing power declines precipitously.

But gold and silver catch a wave, and wealth preservation for the lucky relative few, historically topping out at 2.5 - 3% of the population's assets, is largely assured, enabling a small minority to seriously blunt the inflationary impacts on their material wealth.

Since August 2020, it hasn't been a bed of roses for metals/mining shareholders.

However, as Lobo Tiggre states, "No price goes up forever without taking a break. That's why they call it a correction...In short, I see any near-term correction as a buying opportunity for commodities - even more so for gold and silver, which are monetary metals as well - notice that silver falls into both categories."

Prices UP? More buying of gold and silver. Prices Down? Same Story

What's becoming increasingly apparent is that when gold and silver prices rise, public buying increases. And when prices drop... public buying increases! The mints I've spoken to all report sustained sales of everything gold and silver.

Take Australia's Perth Mint.

Perth Mint minted product sales for both gold and silver soared during February, with more than 124,000 troy ounces of gold, and more than 1.8 million troy ounces of silver sold during the month. Relative to February 2020, sales increased by more than 400% for gold and 200% for silver, as investors took advantage of lower precious metal prices.

The Federal Reserve has only three ways to "deal with" debt: make significant cuts in deficit spending; substantially raise taxes; or let inflation drive economic policy, with the end result that government debts are paid off in increasingly worth-less paper.

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