On another note, there is something strange about the lack of rise in precious metal prices considering the inflation which is devaluing the fiat currency of the USA.
No sir, not strange at all.
Precious Metals keep up with inflation over the very long term but don't do well during periods when the Fed is raising rates. I've seen this movie before. During the last year, the dollar HAS NOT BEEN DEVALUING against other currencies and risk assets and PM's are sort of a hybrid....part commodity, part currency, part risk asset. The fact that the dollar has been devaluing against gas and groceries is throwing people a curve ball.
I think its a pretty good chance that when the Fed goes back to easy money, likely after it breaks the economy, the PMs could go on a run and perhaps lead the risk assets on the way back up for a time....that will be your adjustment for inflation. I've noticed on this last dip in stocks, PMs are holding up pretty good on a relative basis.....actually very good. During some cycles PMs bottom months before the stock market.
