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Biden's $3.9 Trillion In Spending Plans Stoke Inflation

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  • Gold and silver markets sprung higher on Thursday as April and second quarter trading kicked off.
  • The ongoing threat of inflation - and actual inflation - will lead to more buying of gold, silver, and other hard assets.
  • The market has already been buoyed by ultra-low interest rates, quantitative easing, and the threat of rising price pressures.
  • And even if the Fed ultimately hikes rates, if history is any guide, central bankers will be behind the curve - and gold and silver will benefit from real interest rates that continue to remain in negative territory.

By Mike Gleason

Welcome to this week's Market Wrap Podcast, I'm Mike Gleason.

Gold and silver markets sprung higher on Thursday as April and second quarter trading kicked off. After suffering losses in the first quarter, precious metals may now be due for a spring rally.

Despite gaining ground yesterday, gold finished the holiday-shortened trading week down fractionally overall at $1,738 an ounce. Silver, meanwhile, gave up just 8 cents on the week to close at $25.16 per ounce.

Mining stocks outperformed, which is usually a bullish sign for the metals. Shares of major gold streaming company Franco-Nevada broke out to a 3-month high. Perhaps the mining stock indexes will soon follow suit, along with gold and silver prices.

Turning to platinum, the market gained 2.2% this week to trade at $1,228. And finally, palladium fell a slight 0.2% to come in at $2,714 an ounce.

The U.S. Dollar Index was up slightly this week. Regardless of how the dollar fares against other fiat currencies, investors can expect massive depreciation ahead in real terms. There is no end in sight to the inflationary cycle of spending, borrowing, and printing in Washington.

This week President Joe Biden promoted a so-called infrastructure package that comes in at more than $2 trillion.

Much of the proposed spending has nothing to do with paving roads, building bridges, or expanding ports. These sorts of transportation upgrades are slated to only get $115 billion. Meanwhile, Biden would spend $174 billion on electric vehicle subsidies and hundreds of billions more on various "green" and racial leveling programs.

The bulk of the proposed spending appears to be very much inspired by the World Economic Forum's Build Back Better agenda - also known as the Great Reset.

Of course, the Federal Reserve will be expected to play its part. Even though

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