Will Rhind: Gold’s “Fear Factor” is Back; Russia/Ukraine Impact for Platinum, Palladium
All eyes are on the gold price as the yellow metal flirts with its all-time high.
Gold made it well past the US$2,000 per ounce level this week, spurred by the ongoing war between Russia and Ukraine, and market participants are waiting to see when it will cross over to a fresh high.
Speaking to the Investing News Network ahead of this week’s strong price activity, Will Rhind, CEO of GraniteShares, said the “fear factor” has returned for the gold market.
“This whole crisis in Europe … has really brought back the fear factor that I think had been missing from the gold market,” he said, noting that investors are concerned about what will happen next. “Although gold prices had started to creep up on the back of the inflationary pressures that we’re seeing all over the economy, we hadn’t really seen that fear factor in the market since COVID really started in the beginning of 2020.”
Rhind has a positive outlook on gold not just this year, but for the foreseeable future, and he noted that it’s underlying factors like inflation that are driving his bullishness on the metal.
“Inflation, typically once it starts, once you get a high amount of inflation, it’s very difficult to contain,” he explained. “And from that perspective, I think that what’s happening now is we’re sort of almost piling onto that with different pressures that will exacerbate that effect, particularly in energy or with energy prices.”
Looking beyond gold, Rhind pointed out that Russia is a key producer of both platinum and palladium. The two precious metals have already experienced price impacts, with palladium hitting its own new all-time high, and Rhind said that “materially higher prices” could be in store for both of them.
Watch the interview above for more of his thoughts on gold, platinum and palladium, and to learn why the entire commodities space represents an investment opportunity right now.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.