Why should gold investors care about the supply shortages?The answer to this question is threefold:
- Gold and to a lesser extent silver are safe-haven assets. As these crises become more extreme investors turn to gold, which leads to the second point.
- Gold and silver serve as portfolio diversifiers. Most importantly, as supply chain issues wreak havoc on equity markets gold and silver hold their value and provide stability in the portfolio.
- Gold and silver provide an inflation hedge for the rising prices that will ensue as the supply chain crunch continues. Certainly as discussed above the large retailers are finding solutions to the shipping problem by chartering. However, at a higher cost which will be passed on to the consumer.
(source: https://www.zerohedge.com/news/2021-10-14/supply-chain-crisis-effects-gold-silver)