If you look at energy, if you are an oil executive you are not really sitting around thinking, how are we going to ramp up investment on these long-term projects when every single day you are hearing about some environmentalist that wants to put you out of business?
So a lot of executives are just going to run their businesses for cash and dividends.
But generally speaking the inflation story is a lot more than commodities and the transportation side. But the transportation side I don’t think is so transitory either. You’ve had a 10 year bear market in dry bulk shipping.
Things are in motion here, but again it’s just the level of interest rates that’s just…that’s why it was so nonsensical for central banks to create the largest financial bubble in the history of markets in bonds, particularly in Europe with what the ECB did, at the same time rooting for inflation.
“You’ve been bullish on gold and silver, but I want to talk about specifically. The copper story is out there in terms of electric vehicles, but there is going to be a whole bunch of silver demand in the global push toward electric vehicles and I don’t think the ramp in silver production will be there. It feels like the price of silver wants to pulse through $30 and go right to $50, the old all-time high. Your thoughts on silver.”
Therefore, I think oil and gas prices will go higher in the coming years. And agriculture prices will remain high for years because of increasing demand from China.
Inflation Will Last Well Into Next Year
Inflation Will Last Well Into Next Year
But generally speaking the inflation story is a lot more than commodities and the transportation side. But the transportation side I don’t think is so transitory either. You’ve had a 10 year bear market in dry bulk shipping.
There is a fraction of the needed ships being built right now as a result, so there is pricing power for the remaining players. So what we are seeing is things that will last more than just on a temporary basis. Now defining temporary or transitory, who the hell knows? I just know this is going to last well into next year.
Things Are In Motion
Things Are In Motion
Things are in motion here, but again it’s just the level of interest rates that’s just…that’s why it was so nonsensical for central banks to create the largest financial bubble in the history of markets in bonds, particularly in Europe with what the ECB did, at the same time rooting for inflation.
So now that we are actually getting higher inflation they are all worried about what that means for rates. It’s very backwards but that’s the situation we are in.”
Silver Headed Back To $50 All-Time High
Silver Headed Back To $50 All-Time High
“You’ve been bullish on gold and silver, but I want to talk about specifically. The copper story is out there in terms of electric vehicles, but there is going to be a whole bunch of silver demand in the global push toward electric vehicles and I don’t think the ramp in silver production will be there. It feels like the price of silver wants to pulse through $30 and go right to $50, the old all-time high. Your thoughts on silver.”
- Source, King World News