First, in order to compensate for the diminishment of purchasing power that usually accompanies rising inflation, investors normally have demanded higher interest rates on their investment assets. This was particularly true in the 1977-81 era when inflation soared to almost 20% and interest rates rose to roughly the same level.

...controversy and animosity seem to be steadily increasing, quite possibly to the benefit of our precious metals as gold is now resting comfortably above $1,300—the highest level in more than two years as of mid-February.

As we have repeated quite often, rising inflation—or, more particularly, the expectation of rising inflation—has historically been perhaps the most important ingredient of all in past precious metals bull markets.

Another potential problem is the body of regulations imposed by the Paris Climate Accord that President Trump had negated but which President Biden has immediately rejoined.