An allocation to gold and silver fits squarely within the objective of protecting Utah against financial risks and would logically be included in a list of safe and liquid investment options.
In any event, investors should prepared for high inflation to persist. Inflation risks may be to the upside near term as the election approaches and new stimulus schemes get rolled out.
The new statewide sales tax exemption on bullion coins, bars, or rounds (minted of gold or silver, but also platinum, palladium, or copper) takes formal effect on Saturday, March 23rd.
The Fed knows higher rates will eventually cause the economy to collapse. It also knows that inflation hasn’t been beat. So, it faces a choice: higher inflation or an economic crisis.
By the time Powell realizes the recent increases in inflation are not “transitory,” we could all be back in a world of hurt because inflation will keep rising for a while even after the Fed realizes it needs to tighten again.
Many believed that the Fed would have reduced interest rates to where US Treasuries would not be devalued. Nothing has changed, nor is anything about to change anytime soon.
The Fed managed to plug one hole in the dam with this bailout program. But with the Bank Term Funding Program (BTFP) a thing of the past, we could start to see more leaks and cracks.
