Inflation at 50 Year Highs in this Developed Nation

We wish a Merry Christmas and a Happy Holiday Season to all of you in this week's SD Bullion Market Update.

Both the silver spot price and the gold spot price rallied to close holiday-shortened trading. Gold finished this week over the critical $1800 oz level, while silver is back near $23 oz. The gold-silver ratio fell to 79. 

And while both silver and gold may continue to rally to close this year 2021, this was a year for long-term acquisition and dollar-cost averaging.

Both monetary precious metals consolidated and underperformed over the year versus other commodities as price inflation has become a seemingly permeant problem moving forwards.

Concerns over escalating food and energy prices are entirely warranted, and those who have taken advantage of weakness in the precious metals markets this year will likely get rewarded for their discipline and patience.

We continued this week seeing reports of price inflation at 50-year highs in highly developed productive nations such as Germany. Yet instead of massively increased fiat monetary bases after major central banks decided to implement "Going Direct" after August 2019, they are often not explicitly cited for this recent rampant price inflation phenomenon. Instead, the continued trope of escalating price inflation being a pandemic-driven phenomenon somehow persists.

And while all four of the primary precious metals have underperformed denominated in the most dominant fiat Federal Reserve note currency over the last year-plus. 

One only has to look at other suffering economies where the issued fiat currency has recently lost tremendous value to tangible goods and services. To have confidence that gold and silver bullion will eventually provide critical wealth protection and real purchasing power enhancement in the years to come.

That is all for this Christmas week's SD Bullion Market Update. Enjoy this precious time with your loved ones. 

And as always, take great care of yourselves and those you love.

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James Anderson
James Anderson
Senior Market Analyst & Content

A bullion buyer years before the 2008 Global Financial Crisis, James Anderson is a grounded precious metals researcher, content creator, and physical investment grade bullion professional. He has authored several Gold & Silver Guides and has been featured on the History Channel, Zero Hedge, Gold-Eagle, Silver Seek, Value Walk and many more. You can pick up Jame's most recent, comprehensive 200+ Page book here at SD Bullion.

Given that repressed commodity values are now near 100-year low level valuations versus large US stocks, James remains convinced investors and savers should buy and maintain a prudent physical bullion position now, before more unfunded promises debase away in the coming decades...