Market insights and analysis

How dynamic, risk-managed investment solutions are performing in the current market environment

1st Quarter | 2022

Market insights and analysis

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Updates on how dynamic, risk-managed investment solutions are performing in the current market environment.

Last week, gold prices bounced up off this year’s previous support levels. The metal closed the week at $1,842.10 per ounce.

As the interdependent globalist economic system cracks from the stress of COVID lockdowns in China and the economic war between the U.S./Europe and Russia, an economic system that sets the existing U.S.-dollar-based West against the Eurasian block of Russia, China, and India is now arising.

This shift is causing shortages in staples that people in the U.S. take for granted. Self-imposed restrictions on fossil fuels in the U.S. and Europe, along with sanctions imposed on Russia, are causing energy prices to rise.

These measures not only affect the costs of energy and transportation but also fertilizer and, by extension, food. It turns out many of the components of fertilizers are obtained from fossil fuels or Russian production of potash.

The American farmer is now being hit with rising fuel prices. Filling a tractor now costs almost $1,000 in some places, according to Bloomberg. They are also facing a doubling of fertilizer costs, causing many to contemplate planting without fertilizer this season. This could reduce production, which will result in higher prices and shortages.

Higher inflation in fuel and energy could push the standard of living in the U.S. sharply down. Gold is the investment that has historically held its value in such times.

Rick Andrews is president of Avant Capital Management.



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