The Metals War Goes Hot

In this week's edition of Operation Freedom, Dr. Dave takes a look at the recent ballistic upward trajectory of gold and silver...

From a semiconductor production perspective, the significant increase in gold and silver prices could potentially impact the industry in several ways. Gold is extensively used in the creation of advanced semiconductors due to its excellent electrical conductivity and resistance to corrosion. Similarly, silver is utilized in various components, including interconnects and ohmic contacts, for its superior thermal and electrical properties. If prices continue to rise, these increased costs could potentially lead to higher production costs for semiconductor manufacturers, which may be passed on to consumers or absorbed by the companies themselves.

On a fiscal and world monetary policy perspective, the surge in gold and silver prices serves as an indication of investor confidence and economic uncertainty. Historically, periods of high gold prices have often coincided with turbulent financial markets or significant shifts in monetary policy. For instance, central banks lowering interest rates to stimulate economic growth can devalue currency, making commodities like gold more attractive as a hedge against inflation. Consequently, these rising gold and silver prices underscore the ongoing efforts by governments and central banks worldwide to stabilize their economies amidst the challenges posed by the pandemic and other geopolitical factors.