Month: April 2022

“[China’s zero COVID policy] is going to cause economic problems. It’s going to slow production”.

— Precious Metals Advisor Todd Graf

Inflation has become a mainstay in the current economic environment. It’s no longer a question of whether inflation is rising but how much. Everyone is acutely aware of rising costs and the devaluing of the dollar. It’s apparent when filling up the tank, buying basics at the grocery store, and paying monthly bills.

The real concern for the average investor is the rate of inflation and what they should do in response. Watch the video to hear what Precious Metals Advisors Damian White and Todd Graf are saying about inflation and why new supply chain disruptions are worsening an already dire situation.

How high is inflation really?

Inflation numbers are being thrown around left and right, making it difficult for the average investor to get an accurate sense of what’s happening. The US government estimates the economy is experiencing 8.5% inflation. That’s an alarming number, but it might not tell the whole story.

Germany just released updated inflation numbers which paint a grimmer picture than what the US government wants the public to see. The country’s Federal Statistics Office reported that producer price inflation had surpassed 30%, marking the highest rate since 1949 in the economic aftermath of WWII.

The acceleration of inflation.

It’s difficult to pinpoint a specific driver of economic conditions, but the global supply chain disruptions seen during the pandemic sparked an undeniable boost in the inflation rate. Ever since worldwide commerce came to a screeching halt, it’s struggled to pick up steam again. More and more economic pressures continue to pile on top of the economic turmoil.

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Russia’s invasion of Ukraine and the resulting geopolitical schisms shocked markets. Rising energy prices increase the cost of living while making it more expensive for businesses to operate. The most recent fuel being added to the raging fire of inflation is what kicked off the issue in the first place: supply chain disruptions.

China’s new supply chain disaster.

China is the engine that drives the global supply chain. Countless countries rely on this crucial country as the primary source of their supply chains, making it one largest exporters in the world. Due to the CCP’s strict COVID policies, entire metropolises with tens of millions of residents are completely locked down.

This is causing severe congestion to supply chains. Production is expected to slow down drastically. When there are problems at the source, it’s only a matter of time before the issues trickle down the supply chain. Eventually, every country in the world with supply chains originating in China will feel the shock of the disruptions.

Secure your wealth against inflation with gold and silver.

With prices getting out of control, the dollar losing value, and economic conditions only getting worse, it’s time to start making some financial decisions. Smart investors are looking at gold and silver coins as the best way to protect their wealth against rising inflation because of their proven resistance to poor economic circumstances.

If you’d like to learn more about securing your wealth through precious metals investments, request your FREE COPY of our popular Precious Metals Investment Guide.

Despite the ups and downs gold and silver prices have experienced in 2022, Bank of America (BoA) Securities technical analysts recently noted that any dip in prices should be considered a strong buying opportunity.

In a report published earlier this week¹, BoA said that gold is still on track to record all-time highs as long as prices remain above the trending average of $1,888/oz.

Analysts suggested that gold is forming a cup and handle pattern and expect support to remain above $1,940/oz. The report also noted the following:

“We think the daily, weekly and monthly timeframes still indicate higher gold prices this year. Therefore we like longs/buying dips near $1,940/50 for tactical trades and if above $1,888/oz for medium-term trades. Our measured move targets suggest $2,175/oz can still be seen.”

What About Silver?

BoA technical analysts are just as bullish about silver, doubling down on its call for silver prices to exceed $30/oz in 2022. This is despite a recent pullback, with silver currently trading below $25/oz.

The same report added that “tactical views need to hold support at $24.80 while medium-term views need to hold $24.00/oz. A trend line in upper $23s is a last resort.”

Don’t Miss Out on The Current Buying Opportunity

Bank of America Securities technical analysts aren’t the only ones bullish on gold and silver. 2022 is shaping up to be a solid year for both gold and silver prices, with higher prices forecasted by most (Read: 10 Reasons to Buy Gold in 2022.) Take advantage of this current buying opportunity now by contacting the precious metals advisors at Scottsdale Bullion & Coin today!

New to gold and silver investing? Request your FREE COPY of our popular Gold and Silver Investment Guide today!