Inflation and precious metals
Even if there is light at the end of the tunnel in terms of the pandemic, inflation could rise.
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The way monetary and fiscal policy has evolved during the crisis period, some industry insiders see an inflation wave rolling toward us that was stronger than in the 2010s. And the evolution of inflation is an important trend for investors to watch. After all, some asset classes may outperform others.
If inflation is in a normal range between two and three percent, then stocks and cyclical markets generally perform well. If inflation is higher, then inflation-linked securities may decline in value. Therefore, diversification across many asset classes is important. Today, inflation could become a problem. If inflation dropped last year in the wake of the pandemic, a combination of reopening, monetary support from central banks, and fiscal help from central banks is working now. The next few months will also show whether damage to the production base will lead to inflation-driving bottlenecks like those in semiconductors.
Should inflation in this country become high as a result of fiscal and monetary policy interventions, monetary policy support from the European Central Bank could decline. To guard against a possible inflationary shock, investors should pay close attention to the structure of their portfolios. Conventional investments, for example in precious metals, should be included in any case in order to be armed against adversity.
Here, investors should be invested in gold and also silver. Especially in the silver market, many new investors have entered, and rightly so. After all, prices were low in April and March of last year, with multi-year lows attracting new interest. Many expect this trend to continue this year, as silver is in high demand in the technology, manufacturing, solar and automotive sectors. So, companies with silver in the projects like Summa Silver and Discovery Silver should also have good future prospects.
Discovery Silver - https://www.youtube.com/watch?v=gaZ301SosJ8 - owns the flagship Cordero project in Mexico, in Chihuahua. It is expected to become, according to management, one of the largest producing and longest producing primary silver projects in the world.
Summa Silver is also planning big things with its Hughes property in Nevada. The extremely productive Belmont silver mine was once located there, and drilling is underway. Summa Silver also has another silver project in New Mexico.
Current corporate information and press releases from Summa Silver (https://www.resource-capital.ch/en/companies/summa-silver-corp/) and Discovery Silver (https://www.resource-capital.ch/en/companies/discovery-silver-corp/).
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