Plenty To Think About.
Economic and market turmoil is always a catalyst for precious metals.
All major lows in precious metals recently March 2020, August 2018, December 2015, and October 2008. This time around should be no different.
The strongest cyclical bull markets in the metals occurred while or after a bear market was in place in stocks.
This pattern actually goes back to the 1930s, the 1970s, and 2000 to 2011. At a certain point, all that capital leaving the equities markets flow straight into precious metals.
History shows that as a bear market starts in stocks, precious metals disconnected two-thirds of the way through. Investors have endless historical data regarding these events and should be actively making adjustments.
Credit for research: Jordan Roy Byrne.
Another factor that is of great interest is obviously prolonged China lockdowns.
The economy in China has suffered extensively, the Zero-Covid policies have hurt much more than initially thought possible.
As China re-opens for business, we should see a quick jump in certain commodity prices.
This will have a severe ongoing impact on the supply chain issues, causing shortages, and adding too inflationary pressures potentially for the next couple of years.
Short-term: Headlines are your buying opportunities.
Long-term: Fundamentals are your guide.
Much success to all.
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Canada – Australia – China – Switzerland
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