Bonds, stocks, real estate, digital currencies, and a host of commodities, including palladium and rhodium, are flashing inflationary signals. While the Fed continues to call rising inflationary pressures “transitory,” the price action in markets across all asset classes points to a more severe condition. As such, the Aberdeen Standard Physical Precious Metals Basket Shares ETF (GLTR) is a product that could be a growth stock over the coming months and perhaps years because it holds long positions in gold, silver, platinum, and palladium, and precious metals remain in bull markets. Read on.
- The Fed is not even thinking about thinking about ending fueling inflationary pressures
- Palladium rose to a new record higher last week
- Platinum broke out above a technical resistance level earlier this year
- Gold and silver are consolidating, but trends remain bullish
- GLTR has substantial growth potential in an inflationary environment
In the aftermath of the 2008 global financial crisis, the Fed and other world central banks slashed interest rates to historically low levels. They rolled out quantitative easing to push rates lower further out along the yield curve. The price tag was a rise in many commodity prices to multi-year or all-time highs by 2011 and 2012. The central banks used the same tools in 2020 as the global pandemic threatened stability in the worldwide financial system. The only difference has been that in 2020 the amounts were far higher than in 2008.
Albert Einstein once defined insanity as doing the same thing and expecting a different result. Commodity prices have already begun reflecting the same price action that followed the 2008 stimulus. Precious metals can act as inflation barometers. While gold and silver prices have pulled back over the past months, platinum broke above a long-term technical resistance level in 2021, and palladium made new all-time highs last week. As inflationary pressures mount, the prospects for higher precious metals prices are rising. The Aberdeen Standard Physical Precious Metals Basket Shares ETF (GLTR) holds long physical gold, silver, platinum, and palladium positions. So rising inflation could make GLTR a growth stock over the coming months and years.