Following Twitter, Elon Musk May Next Want to Acquire Silver

Elon Musk’s $44 billion buy of Twitter is being hailed as a victory without spending a dime speech. Musk vows to make modifications to the social media platform that may make it a real “digital city sq.” the place persons are free to talk their minds, even when others take offense.

After all, not everybody is happy in regards to the prospect.

“Biden officers fear Musk will enable Trump to return to Twitter,” CNBC informs us.

Musk, in the meantime, is fearful that the Biden administration could launch retaliatory assaults by securities regulators. He’s additionally involved by authorities insurance policies which might be stoking inflation.

Elon to Buy Twitter

The Tesla CEO famous in his firm’s newest earnings name that “inflation is at like a 40 or 50-year excessive. And I feel the official numbers really understate the true magnitude of inflation.”

Tesla factories rely on suppliers of uncooked supplies together with metals. And suppliers are elevating costs.

“In some circumstances, we’re seeing suppliers request 20% to 30% price will increase for elements from final 12 months to the tip of this 12 months,” Musk stated.

Of particular significance is lithium, a metallic wanted for Tesla’s battery methods. The issue is that demand for lithium is rising sooner than provide, sending costs skyward.

Musk has steered that he might need to get into the mining and refining enterprise himself to safe satisfactory provides of lithium. He could determine it’s smart to spend money on different scarce metals as effectively, together with silver.

Every Tesla requires near 50 grams of silver. It might not sound like an enormous quantity, but when Tesla is to satisfy its manufacturing purpose of 19 million extra automobiles by 2030, it is going to want over 30 million ounces of silver.

Silver, not like lithium, at present stays low-cost on an historic foundation. However silver can be projected to be in a provide deficit this 12 months, with industrial demand set to hit a document excessive.

Moderately than tackle the dangers of proudly owning and working a silver mine, Musk may start constructing stockpiles of the metallic whereas it’s nonetheless obtainable with out having to pay an enormous premium.

Tesla has already declared it is going to maintain different property akin to cryptocurrencies on its steadiness sheet. Whereas Musk is famously keen on cryptos, they haven’t helped Tesla keep in entrance of this 12 months’s inflation surge.

Each Bitcoin and Dogecoin costs have lagged in latest months. And neither does something specifically to assist Tesla receive the fundamental supplies it must construct new automobiles.

Tesla’s 10-k submitting from 2021 that acknowledged along with holding Bitcoin, the corporate “could make investments a portion of such money in sure different reserve property.” These embrace “gold bullion, gold exchange-traded funds and different property as specified sooner or later.”

A single Elon Musk tweet in regards to the worth of holding valuable metals may transfer the markets.

But when he’s severe about buying gold as money reserves and strategic metals together with lithium and silver for manufacturing, he would understandably wish to hold quiet whereas he’s nonetheless making an attempt to build up at right now’s costs.

The multi-billionaire was moved to amass Twitter much less due to its potential to generate income and extra due to his imaginative and prescient for it to function bastion without spending a dime speech. Musk additionally has a imaginative and prescient to make all automobiles self-driving and develop the applied sciences wanted for people to inhabit different planets.

It doesn’t take a visionary to see the necessity to defend towards the corrosive forces of inflation. It simply takes widespread sense, which in follow means a capability to see via the official propaganda that underpins the Federal Reserve’s inflationary financial insurance policies.

Whether or not you’re a person of modest means or the pinnacle of a trillion-dollar firm, you face the identical fundamental drawback of the way to plan for a future wherein your {dollars} will buy much less and fewer of what you want.

The answer is to turn out to be resilient to declines in fiat forex worth. A main manner of accomplishing such resilience is to personal arduous forex within the type of gold and silver.


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