Where do we go from here? Well, silver is headed back to all-time high plus other surprises.
Where Do We Go From Here?
May 22 (King World News) – Eric King: “Peter, you’ve been on a roll with what you’ve been predicting. You have been bullish copper, crude oil, and other commodities. You said gold would go higher. You have been on fire with your market calls. We’re seeing raging inflation, which you said was going to happen, where do we go from here?”
Trend Will Continue
Peter Boockvar: “It’s something that I obsess about every day. With respect to copper, which is near a 10 year high, when you look at supply/demand dynamics it’s pretty clear that copper prices are going higher. Supply is still pretty constrained and there’s been no real investment for years. It takes a long time to bring copper into production and at the same time, copper is the new oil.
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. 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
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 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
Eric King: “Peter, 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.”
Peter Boockvar: “I happen to agree. Silver is this unique commodity where…to continue listening to Peter’s predictions for silver, gold, and other global markets CLICK HERE OR ON THE IMAGE BELOW.
***To listen to Alasdair Macleod discuss the end of the paper gold and silver markets, LBMA troubles, and Basel III rules impacting gold CLICK HERE OR ON THE IMAGE BELOW.
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