Gold/Silver: The key levels to watch

This note is coming out a little early this week as I finish loading up the moving truck and am driving 922 miles from Chicago to Florida. There were two clear winners in the metals space this week, with Copper reaching its highest level since 2011 and Palladium making a new all-time high. One thing they say about "all-time highs" is that it is a very long time.


I had the pleasure of contributing to Kitco's video commentary on Wednesday hosted by David Lin. I always enjoy our discussions as they hit on various topics and cover several different commodities. After each video gets posted, I frequently have listeners reach out and ask me specific questions surrounding Gold and Silver. The repeating narrative I am hearing is that "Gold should go up because of rising inflation like in the 1970s."


Addressing the 1970's, specifically 1976-1980, rising Oil prices coupled with rising unemployment and multiple periods of declining growth caused "Stagflation." Stagflation is one of the best performing periods for Gold. Looking back to the continuous chart, we can see how these periods have responded.