Kim Jong Un’s sabre rattling and Donald Trump’s words of belligerence are precipitating a dramatic increase in the price of Gold and Silver. Investors are flocking to the safe-haven investments or at least diversifying their portfolios to ensure that they are hedged in the event that conflict should break out.

The price of gold and silver have in the last few years been depressed by the federal reserve – which they have done so through getting their friends at JP Morgan to short the markets with billions of dollars of printed money. By keeping commodity prices down they can continue to print money and inflate their way out of foreign debt and save the banks. The unfortunate setup we have currently is the inflation is effectively based on the CPI (Consumer Price Index) which is an index that can be manipulated and which is exactly what the federal reserve has been doing so that it can continue to print money willy nilly.

With the disappearance of physical stock and the decline in production of silver in one of the world’s biggest mining countries (ie. Peru) in 2017 will lead to higher prices for the commodities in the coming 12-18 months. The Peru Ministry of Energy and Mining data says that the production of silver fell 12% to 323.1 metric tons this February (2017) from 367.4 metric tons (same month last year). See Money Metals Exchange’s article on Peru’s Production capacities (https://www.moneymetals.com/news/2017/04/19/peru-silver-production-decline-001050)

We expect that silver prices could easily hit US$30 /oz by the middle of 2018 so investors should brace themselves for a massive surge in gold and silver prices in the next 6-12 months.