Timeline of silver price breakout, Powell talks about inflation
Catch up and stay up to date with this week’s content highlights from Charlotte McLeod, our Editorial Director.
It was a week of highs and lows for the price of gold, which broke through the US $ 1,830 per ounce mark during the period, but fell back to around US $ 1,810 on Friday July 16th.
Attention was drawn to comments by US Federal Reserve Chairman Jerome Powell, who testified before a Senate committee on Thursday (July 15).
Among other things, Powell was asked about inflation, which he previously described as “transient”. This time around, he admitted it was “way above the mark.”
“We said we would start reducing our asset purchases when we believe the economy has made further measured progress compared to last December. We are actively thinking about this now ”- Jerome Powell, US Federal Reserve
Talk is starts to surface as to whether President Joe Biden will replace Powell when his tenure as Fed chairman ends in February. Powell has held the position since February 2018.
With the improvement in the price of gold, how is its brother, silver? The white metal had a bumpy ride in 2021, but so far in July it has mostly stayed above US $ 26 an ounce.
I spoke this week with David H. Smith about the Morgan Report, who said that while US $ 30 has been a sticking point for money for some time, he sees the situation change as the holiday season approaches. Job.
He’s not sure he’ll exceed US $ 50 this year, but said many people he respects believe it will.
David also made an interesting comment on the silver supply, noting that about 70 percent of silver is produced as a by-product of other metals, including copper.
More copper mines are expected to come on stream over the next 10 to 15 years, but David stressed that this will likely happen slowly; Additionally, these future copper mines may not have as many silver credits as people expect. This of course has implications for the price of silver as well as the supply.
“The assumption is that there will be new deposits of copper on board, and when that happens there will be a lot of new money as much of it is a by-product of copper production. But my premise is that there won’t be as many filings coming in because they take a long time to get to production ”- David H. Smith, The Morgan Report
With the future of money in mind, we asked our Twitter followers this week they think the price of the precious metal will be at the end of the third quarter. At the end of the vote, the range of US $ 25 to US $ 30 had the most votes. Interestingly, the “above $ 35” option was in second place.
Finally, on cannabis, INN’s Bryan Mc Govern asked market experts for an update on beverages, which are once again in the spotlight in Canada.
Cannabis drinks first appeared during the country’s “Cannabis 2.0” legalization phase, which focused on non-smokable products. They have struggled to thrive since then – for example, data from the Ontario Cannabis Store shows only 1.5% of sales were from beverages from April 2020 to March 2021.
The challenges for drinks are quite extensive. Cannabis companies operating in Canada have highlighted factors such as the country’s strict marketing regulations, as well as the fact that unlike alcohol, cannabis drinks cannot be sold in bars and other venues. . Some market watchers believe that could change this summer as new products hit shelves, but for now that remains to be seen.
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Disclosure of Securities: I, Charlotte McLeod, do not hold any direct investment interests in the companies mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or completeness of any information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investment News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.