There is a clip circulating of Larry Fink (CEO of BlackRock) giving his opinions on current Federal Reserve (FED) monetary policy and how he feels this is going to impact the economy moving forward.  Some readers may already know who Larry Fink is and what BlackRock does, but for those that don’t: BlackRock is the largest investment management firm in the world with over $10 trillion of assets under management.  Yes, you read that correct, BlackRock manages investments equivalent to a third of the entire U.S National Debt and because of this, there is no company on earth that has more of a reason to keep the pulse of the economy.

When asked if the FED has any chance of recovering its losses to the market in the second half of the year, Fink outright said he does not think that is going to happen citing the fact major indexes (S&P, Dow, NASDAQ) are masking the current trouble the American economy is facing.  How he said they are doing that was telling; rather than the entire indexes moving in one direction (which by his statement you would think is upward, in fact is mostly heading in a downward direction leading to the bear market or almost bear market trends we are seeing in major indexes) he stated that sectors such as energy and commodities were propping up the market and that “the spread between the winners and losers is broad.”  This clearly shows that without commodities and energy, the market would be in shambles already.  As silver and gold investors, this is what we have been waiting for – a market that due to turmoil is returning dollars to assets with REAL TANGIBLE value.  Which only makes sense because as an economy falters, less people are buying designer handbags, but everyone is still buying food, energy, and other necessities – sound money to protect their wealth included.

While that alone was enough to shake some investors, Fink did not stop there, he went on to say, “there is greater recognition that inflation IS NOT TRANISTORY – it is probably with us for a number of years and it is the type of inflation that I don’t believe the Federal Reserve has the policy or the tools to do much with right now.”  And there it is: the quiet part said out loud.  As a stand alone, these comments from Fink are heavy hitters, but this is coming on the tail end of a statement made by Janet Yellen (U.S. Secretary of the Treasury) that also has market watchers spooked in relation to the path of inflation.  Check out the timeline of Janet Yellen below:

March 14^th, 2021  – “Risk of inflation?  I think it is small and manageable.”

May 4^th, 2021 – “I don’t anticipate inflation is going to be a problem.”

May 31^st, 2022 – “I was wrong then about the path inflation would take.”

And just to add a cherry on top for investors, Jamie Dimon (CEO of JPMorgan) said in Davos that “an economic hurricane is coming” and that investors and the general public alike should “brace yourself.”

With all of the major economic players beginning to more aggressively sound the inflation alarm, there really is no better time to hedge yourself with the best safe haven known around the world: silver and gold.  That said, do not take solely our word for it, central banks are leading the charge.  Prior the 2008 Great Recession, central banks were net SELLERS of the yellow metal. However, since 2008, central banks have been net BUYERS of gold and doing so at an increasingly quick rate.  The most recent report was out of the Czech Republic (who is getting hammered by inflation over 14%) who announced they were upping their gold reserves from 11 tonnes up to 100 tonnes.

If you wish to follow suit with central banks in the investment of precious metals, we offer a wide range of silver, gold, and platinum at competitive prices. This week, our featured piece is the stunning 1 oz Silver Dragon Rectangular Coin from the Perth Mint.  This coin debuted in 2021 and became so popular they decided to mint them again for 2022.

Check out our website for more precious metal products.