Charles Goyette, author of the The Dollar Meltdown and The Last Gold Rush, notes the end of domestic currency hegemony and the benefits of accumulating gold to offset the associated financial risks. Charles questions if the sovereign gold in storage at Fort Knox, West Point and other locations has been rehypothecated, i.e., lent out perhaps more than once to secure debt and related claims.
Meanwhile, the domestic supply chain continues to be haunted by concerns over difficulty securing adequate transportation for essential goods; our guest is concerned that this challenge may be leveraged by those who wish to undermine the national welfare.
In related news, supply shortages in tandem with galloping inflation could cause warehouses and distributors to balk on delivery fulfillment, in anticipation of elevated prices for their cargo and related revenues. The situation is emblematic of past inflationary crises, that tended to spiral out of control and keenly concerning, given the JIT and highly interconnected modern distribution channels.
Furthermore, the price of crude oil (WTIC) continues to trend higher; the host's current target of $100-$120 per barrel remains intact and probable. The implications of higher energy prices significantly amplifies exposure to price inflation, as the costs of production are transferred to the consumer, via increased transportation costs and production expenses, potentially leading to hording of resources, which artificially increases demand. Key takeaway, the duo concur, PMs remain the most attractive asset class relative to historical prices and inflated financial assets.