Gold breaks through $1,750 and silver very close to breaking $18 once again. Canada loses its AAA rating. Now that Canada does not have to defend AAA there are less expectations. If it gets any worse the cost of debt is going to rise. The bottom line is that the country’s finances are obviously not in good condition and how do you protect your own finances? Once should consider physical precious metals. How do you protect against the rising cost of debt when there is a lack of faith in the currency? Gold and silver have historically been a great hedge against inflation. Gold has seen some of the most growth during periods of inflation.
How do you know if inflation is on the rise? Gas prices are actually rising during a time when there are not many drivers. Groceries are definitely on the rise, and who knows what other surcharges will be added to services as the economy opens back up.
There has been a lack of supply of silver in the market. More importantly, mine supply on silver is way down. Several articles are showing a structural decline in mine production of silver. It is difficult to see how this will not impact above ground supply and hence pressure on the physical market. It is difficult to imagine this not having an impact on the prices for physical silver. The current paper prices of silver seems to be sending a false signal to the market that there is plenty of product when it
