Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Trump Stocks and Crypto Mania 2025 Incoming as Bitcoin Breaks Above $100k - 8th Dec 24
Gold Price Multiple Confirmations - Are You Ready? - 8th Dec 24
Gold Price Monster Upleg Lives - 8th Dec 24
Stock & Crypto Markets Going into December 2024 - 2nd Dec 24
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Energy Metals Build Momentum; Silver & Platinum May Follow

Commodities / Metals & Mining Sep 06, 2021 - 10:13 PM GMT

By: MoneyMetals

Commodities

Will this September be one to remember in the markets? It is often characterized by rising volatility heading into the fall. September also often ushers in a period of seasonal strength for precious metals markets.

U.S. stocks opened the month heading back up to record levels. Meanwhile, gold and silver traded with little fanfare. Prices bounced around quietly ahead of Friday’s big jobs report.

Despite lackluster performance in the precious metals sector of late, some other metals are taking off. Energy metals in particular are a hot commodity right now. Uranium – the fuel for nuclear reactors – has suddenly gained strength on supply concerns. And metals used in electric vehicles, including lithium and rare earth elements, are surging along with demand for electric vehicles.


Investors may be overlooking the fact that silver, platinum, and palladium are also energy metals. Silver is used in electronic connections, in batteries, and in electricity-generating solar panels. Platinum and palladium are used in catalytic converters and in hydrogen fuel cells.

Fuel cell technology may be in the very early stages of catching on as a clean and efficient way to power vehicles. Growth in this area will mean an increase in demand for platinum especially. It is currently the preferred metal for fuel cell catalysts.

Tesla CEO Elon Musk is well aware of the need to secure supplies of strategic metals for electric vehicle and battery production. Perhaps that is why he rarely talks about or tweets about metals. He would rather sidetrack the investing public into Dogecoin – which neither Tesla nor any manufacturing company needs in any quantity.

Yet other billionaires are getting more vocal about the investment opportunities in physical metals.

Hedge fund manager John Paulson told Bloomberg Wealth this week that he expects cryptocurrencies to crash and gold to surge as investors seek tangible protection from inflation.

Paulson rose to fame during the subprime mortgage crisis of 2007-2008 when his fund bet big against housing-related financial assets. He cashed in for himself and his investors to the tune of $20 billion.

Now he sees great opportunity in owning hard money.

Billionaire investor Jeffrey Gundlach is known in the financial media as the “Bond King.” But these days he’s not thrilled about owning dollar-denominated IOUs. In fact, he stated that his “number one conviction” is that the U.S. dollar is going to go down.

Gundlach sees the Federal Reserve Note’s decline leading to a big rally in gold once it breaks out of its recent trading range.

The smart money isn’t waiting for the public to pile into precious metals following a breakout. Large institutional investors are accumulating while prices are still low, and sentiment is downbeat.

Billionaires who see long-term value in hard money understand that in pursuing inflationary monetary policy, the Fed has gone down a road with no exits. The only possible destination is a dramatically devalued currency. The only question is how rapidly central bankers get us there.

Fed chairman Jerome Powell appears willing to facilitate as much spending and debt as the Biden administration wants to rack up. Although taper talk is in the air, there will be no tapering of the national debt. Therefore, there can be no tapering of the money supply. Under a debt-based monetary system, the supply of currency units has to keep growing in perpetuity in order to keep debtors afloat.

Powell is a functionary who knows what his role is – and that’s to enable politicians to spend at will and provide whatever backing the U.S. Treasury Department needs. Notwithstanding recent complaints about Chairman Powell not being socialist enough, Treasury Secretary Janet Yellen has recommended that President Joe Biden reappoint him to another term.

Powell is a Republican in name only who was originally appointed by President Donald Trump. The fact that Powell now enjoys support within the Biden administration proves once again that there is really only one school of thought operating in Washington when it comes to monetary policy. Everyone wants easy money because no one is willing to make the hard political choices.

That means savers, investors, and retirees have no choice but get out of Federal Reserve Notes if they want to retain purchasing power. Fortunately, it’s easy to convert fiat currency into the hard money of gold and silver bullion.

By Mike Gleason

MoneyMetals.com

Mike Gleason is President of Money Metals Exchange, the national precious metals company named 2015 "Dealer of the Year" in the United States by an independent global ratings group. A graduate of the University of Florida, Gleason is a seasoned business leader, investor, political strategist, and grassroots activist. Gleason has frequently appeared on national television networks such as CNN, FoxNews, and CNBC, and his writings have appeared in hundreds of publications such as the Wall Street Journal, Detroit News, Washington Times, and National Review.

© 2021 Mike Gleason - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in