Hard Assets Poised for Surge Amid Inflation, Geopolitical Tensions

The Hard Asset Decade is likely upon us, with prices of commodities such as precious metals, industrial metals, energy, and agriculture set to surge due to inflation, debt, currency concerns, and geopolitical instability. According to Lars Hansen, Head of Research at The Gold & Silver Club, this cycle will be characterized by the scarcity of physical resources.

Energy, in particular, is becoming increasingly important as extracting, processing, and transporting almost every physical resource requires enormous amounts of fuel and electricity. Diesel prices have reached a record national average of approximately $6.53 a gallon in the US, with analysts at GSC Commodity Intelligence expecting inventories to remain below the five-year low through most of 2027.

The consequences of energy scarcity will be felt throughout the economy, from transportation and manufacturing to farming and food prices. Agriculture is also set to become one of the defining trades of the next phase, with elevated energy costs raising the price of planting, harvesting, fertilizer, refrigeration, processing, and transportation.