What a dramatic move oil has seen since December 1, 2021. West Texas Intermediate was trading at $65 U.S. on Dec. 1st 2021 and rose to $92 on of Feb 4, 2022. Gas
prices in Canada have risen from $1.35 CAD to $1.60 a litre and are headed higher as a result of the rise in crude. Some are calling for crude to go to $125 U.S. a barrel, and could then possibly test the all-time high of $147.27 set in July 2008 during the Financial crisis. Higher oil and gas prices could slow recovery in 2022 if consumers and truckers are paying much more to fill up at the pumps.
Bitcoin was trading just under $70,000 U.S. in early November 2021 but has since seen a dramatic selloff and as of late January 2022 bitcoin declined to $32,000 U.S. per coin - a 48% decline! During the first week of February 2022 Bitcoin started to move higher again. The jury is still out as to Bitcoin's future. Will it be Boom or Bust? Calls range from Bitcoin to reach over $100,000, while others say it is worthless. The one consistency with bitcoin is that it is extremely volatile.
On February 2, 2022 Meta (Facebook’s Parent Co.) announced earnings and for the first time in 18 years Facebook had lost daily users. The market reacted with a violent selloff and the stock sold off from the $325 U.S. range to approximately $235 U.S. down over 25%. The loss of ($237 U.S. billion) is the largest one-day market value drop for a stock in market history. Losing daily users and forecasts for slower revenue growth along with people having concerns with censorship could provide a challenge for Facebook to regain its dominance in the social media space. Plus it will be difficult for Facebook to attract new users as younger generations are drawn to other social media platforms such as TikTok.
Inflation continues to be a problem with gas, food and consumer goods all costing more. Metal Prices such as copper, nickel and zinc continue to trade near all time highs which in turn raises the cost of goods. The Supply Chain is still disrupted and shortages are exasperating the situation driving costs higher and making availability of some goods scarce. Goods inflation is surging while inflation service hasn't risen as of yet, but will rise as employers have to increase wages to attract and retain workers.
The Federal Reserve and Bank of Canada have signaled that they are going to raise interest rates in the near term and this has already led to a sell off in the markets and could worsen depending on how high rates go. The housing market could be affected as well, along with Gold and Silver which you can read about in our Reports.
There is a growing concern that Russia might invade the Ukraine. If this occurs history shows that gold and silver will surge higher.
Stay long Oil ETFs and gold and silver.
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