The primary catalyst is a structural supply deficit. The World Platinum Investment Council (WPIC) reported that demand outpaced supply by 995,000 ounces in 2024, nearly a million ounces—46% more than analysts forecast.
The Fed’s current inaction is exactly what you would expect given the Catch-22 it finds itself in. It simultaneously needs to cut rates to prop up the easy money-addicted economy, and hold rates steady (or even raise them) to keep inflation at bay.
Most consumers don't notice shrinkflation. When they do, their anger is usually directed at the “greedy” corporations that are charging them the same for less. But there's another culprit. The Federal Reserve.
With U.S. debt now over $36 trillion and growth slowing, central banks themselves are turning to physical bullion and not for yield, but for protection.
The advances in AI technologies are positive from an economic point of view, and from humanist and spiritual points of view. Despite the dangers from the State having first access to them, they’ll turn out to be very liberating on all levels.
The next time you see the COMEX gold price rally up to a critical resistance point and do so while total contract open interest rises sharply, be prepared for the sharp reversal and pullback that is very likely to follow.
