As trillions are added to the U.S. debt in the federal government’s response to the COVID-19 pandemic, it has offered a bright spot for those seeking financial refuge in hard money assets like gold and silver. It has also rewarded those seeking alternatives to the U.S. Dollar like Bitcoin. At the beginning of the year, gold and silver were not sparkling; however, since March, they have started to shine. And not only the value for the precious metals themselves; it has been even more profitable for speculators.
Those willing to purchase call options, both short-term and LEAPs have done very well. The chart above is a typical example, showing long-term call options to purchase SLV (the iShares Silver Trust) at $22 by January 21, 2022, rising over 22% this past month. SLV is trading just over $20.
As Congress hammers out more ways to add to the never-ending debt clock, now at almost $27 trillion, investors are seeking ways to thwart what they see as an inevitable breakout of higher inflation. This, although the Federal Reserve has stated its goal is to keep inflation at 2 percent, Americans are wondering how they plan to keep it at that level.
Bitcoin is up over 31% over the last three months, though it has been stuck in a tight trading range this past month. It is now valued around $9,300 to the U.S. Dollar.
In times of uncertainty, Americans look for hard money assets or alternative currencies, especially if they feel hyper-inflation is on the horizon. This is because when and if hyper-inflation ever hits America, then the U.S. Dollar will have far less buying power.