Ongoing and increased inflation concerns pushed gold and silver prices higher in early trading Monday morning. Economist James Rickards says that worrisome inflation coupled with the Ukraine war and supply chain issues are creating an environment for gold to thrive. In the article below, he explains that he feels these issues will either end with permanently higher prices or a new great depression — both of which will benefit gold. He says the sooner you buy gold, the better. A recent Financial Times article also highlights the benefits of gold. Author John Plender calls Bitcoin a risky fad, saying it’s hard to believe that it will, “topple gold from its position as the ultimate bolt-hole for frightened money.”


Daily Reckoning/James Rickards
The Newest Case for Gold

The stars are aligning for gold. A combination of geopolitical tumult, supply chain problems and inflation all point to much higher gold prices. Today, I’ll break it all down.

If you believe that the war in Ukraine will end soon, that global supply chains will heal quickly and that inflation is transitory, then you’re probably in for a rude awakening. In fact, none of those things is likely.

Even if the shooting stops in Ukraine soon, something that is not at all assured, the geopolitical consequences will dominate events for years or decades.

Read the full story, here.


Financial Times/John Plender
Crypto vs gold: the search for an investment bolt hole

Crypto assets are no longer on the fringe of the financial system. So says the IMF, which pointed out in a recent blog that the likes of bitcoin have matured from an obscure asset class with few users to an integral part of the digital asset revolution.

Millions of investors have been swept up by the enthusiasm for crypto, not least many retail savers lured by its surging prices. Some claim that in the post-pandemic world bitcoin could even displace gold as investors’ asset of choice to address extreme risks, price instability and geopolitical turmoil of the kind exemplified by Russia’s invasion of Ukraine. As Tyler Winklevoss, a tech entrepreneur, put it: “Our basic thesis for bitcoin is that it is better than gold.”

Yet investors should be wary of such assertions given gold’s pedigree going back thousands of years.

You can read the entire article, here.


CNBC/Hugh Son
Dimon says confluence of inflation, Ukraine war may ‘dramatically increase risks ahead’ for U.S.

Jamie Dimon, CEO and chairman of the biggest U.S. bank by assets, pointed to a potentially unprecedented combination of risks facing the country in his annual shareholder letter.

Three forces are likely to shape the world over the next several decades: a U.S. economy rebounding from the Covid pandemic; high inflation that will usher in an era of rising rates, and Russia’s invasion of Ukraine and the resulting humanitarian crisis now underway, according to Dimon.

“Each of these three factors mentioned above is unique in its own right: The dramatic stimulus-fueled recovery from the COVID-19 pandemic, the likely need for rapidly raising rates and the required reversal of QE, and the war in Ukraine and the sanctions on Russia,” Dimon wrote.

You can read the full story, here.



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