Precious Metals Report 2023/03
Gold has always been considered the number 1 store of value! Especially in times like these, in which an explosive mixture of high inflation, threatening recession, completely out of control debt levels, war behavior including (energy) price explosion represent a constantly growing danger for the savings. In addition, it seems that a zero more or less no longer matters. Years ago, former Fed chief Ben Bernanke coined the term "helicopter money," in which central bank money created out of nothing is paid out directly to the state or citizens. Long frowned upon, we now have this for some time in rough quantities. Of course, somewhat differently packaged, as "Corona emergency aid", "gas price brake" or "fuel rebate", so that it is not immediately so noticeable. All this means that the FIAT currency system as we know it is irrevocably reaching its limits. The price of gold is likely to rise sharply at the latest when global key interest rates are expected to fall, delighting investors not only for the purpose of storing value but also, and above all, with gains on corresponding precious metal shares.
In the case of silver, the energy sector in particular will play a dominant role in the future. The use in many new components of more and more electric vehicles, in photovoltaic systems (installed over several decades), but also in 5G networks and in the medical sector, will cause industrial demand to rise sharply in the coming years.
In the future, platinum will increasingly be used in catalysts to accelerate the reaction of hydrogen and oxygen in fuel cells. The supply chain problems of recent years have largely dissipated, so a strong increase in demand can be expected from the auto industry. In addition, investment demand is expected to pick up further.
Russia is the world's largest palladium producer with almost 40%. In addition, the production of the second largest producer, South Africa, is declining more and more. There is a risk that Western countries will experience a massive undersupply. Rising prices are likely to be the consequence.
For both platinum and palladium, a supply slump is to be expected in the coming years, as the important South African mines in particular will not be able to maintain their production to the usual extent. Even rising prices are unlikely to contribute to an improvement.