Bill Murphy of GATA.org and LeMetropole Cafe , returns to GoldSeek.com Radio with his outlook on the PMs sector. Investors could soon see price appreciation in gold and silver, amid soaring energy prices.
As the CRB commodities index soars to 5 year highs along with crude oil, the nascent bull market in the PMs sector appears to be building momentum for explosive moves over the coming months, years.
The energy intensive ore extraction and refining process will force producers to transfer the ever increasing costs to the marketplace, adding price support for bullion.
Markets and investors dislike uncertainty, and what could cause more uncertainty for financial markets than the suggestion that conflict in Ukraine could lead to, "The end of civilization" as one of the leading global investment magnates noted we could be facing.
When viewed from the standpoint of US purchasing power, gold should be approximately 3x higher than the 1980's peak, at least $2,500.
With dollar hegemony increasingly under question, further erosion of the petrodollar arrangement amid the Ukraine drama adds further weight to currency safe havens, such as bullion and related shares.