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Asian Metals Market Update: Food price inflation

Asian Metals Market Update for 11th April 2022

Food price inflation is the focus. There can be some serious food shortages worldwide over the coming months due to Ukraine and global warming. Central banks and nations cannot tame food inflation. Even a quicker interest rate hike by central banks will not be able to curb food inflation.

There is a shortage of fertilizer due to Ukraine. Fertilizer cost worldwide is reaching Mars. The cost of farming is going the Nickel way. Investment Demand for safe havens like gold and silver will rise this week, next week, and coming months.

Gold and silver are rising on the back of the rising US dollar Index. Another reason to remain invested in gold and silver. Gold and silver will see a correction only if both US CPI and US PPI numbers come in at the lower side of expectation.

COMEX SILVER MAY 2022 (current market price $2485.20)

  • Breakout price: $2526.30
  • Breakdown price: $2413.70
  • Bullish View: Silver can rise to $2703.50 as long as it trades over $2394.50.
  • All price fall upto $2394.50 will be a part of the bullish trend.

WTI CRUDE OIL current contract 2022 (current market price $96.16)

  • Breakout price: $105.91
  • Breakdown price: $92.30
  • Crude oil has to trade over $92.30 on a daily closing basis to rise to $110.10 and $121.10.
  • For a bearish trend crude oil needs a daily close below $92.30 for five consecutive trading sessions.

This is a shortened trading week. There will be position squaring and rebuilding for the end of the month after the release of US march CPI numbers and PPI numbers.

A bit off-topic on financial planning

In India I see hyperinflation coming at any time. The government does not want to reduce taxes an anything. State coffers are increasing with the price rise. You, me, and everyone’s net real income is on a steady decline. We all need to be frugal. We need to convince our family members to be frugal. My calculation is that if your monthly income is less than Rs.2,00,000 per month (Rs.2 lac/month), then we all need to reduce expenses that can be controlled. Kid’s expenses this year will rise sharply. Vacation cost has more than doubled over the past year. Medical costs and medical insurance costs are nearing the moon. A bad monsoon rain (if any) will only increase the pace of decrease of your real income. Be frugal.

Only a sound savings strategy and a sound investment strategy will help us get over the upcoming multi-century high inflation. Gold, silver, cryptocurrencies, metaverse, and stocks should all be a part of your diversified investment portfolio.


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