- StraightUp is expected to benefit from increased interest in precious metals as investors, traders, and savers rush into gold and silver markets to hedge against inflation, which has risen to its highest point since 1982
- Economists expect that the strong inflation will continue driving buyers into gold and other precious metals
- StraightUp is acquiring various gold and silver mineral property assets in historically prolific regions of both North and South America
The latest data released December 10 by the Bureau of Labor Statistics show the US inflation rate rose to 6.8%, its highest point since 1982, on the back of higher housing, food, and gas prices. The price hikes are attributable to the pandemic, which disrupted and continues to affect manufacturing and shipping. At the same time, Americans have more cash to spend due to the US government’s stimulus payment program. This has burdened supply chains even further, bumping up inflation numbers (https://ibn.fm/90wSw).
Economists are, however, wary that the country’s inflation is no longer in the “transitory” ballpark. Instead, they opine that the Federal Reserve (“the Fed”), which is congressionally mandated to tame inflation, is losing control of the impermanence narrative of the current hot figures. Ironically, the Fed is said to be eager to see inflation numbers move even higher because that would make otherwise unsustainable debt loads more sustainable by reducing their real value – borrowing vast amounts of money is appealing provided interest rates remain below the inflation rate.
But according to a recent Money Metals article (https://ibn.fm/OwttD), this presents a challenge. The write-up observes that debt can work out great for leveraged speculators in financial markets until it no longer does. “At some point, interest rates will rise… Asset classes that have been heavily bid up by leveraged speculation include stocks, real estate, and even cryptocurrency. When the next round of deleveraging takes hold, these and other financial assets will be vulnerable to forced selling. By contrast, precious metals markets have seen very little speculative buying of late,” the article reads.
The article notes that as inflation eats away the value of financial assets, hard assets such as gold and silver are likely to garner the attention of investors. In November, in spite of normal and expected ups and downs, gold prices rallied to a near-five-month high after high consumer price data prompted people to buy gold as a hedge against inflation (https://ibn.fm/xFXOJ).
Economists expect that strong inflation will continue to drive buyers into gold, while others observe that the Fed’s hands are tied – any remedial efforts are only likely to compound the situation. As this happens, the gold market is expected to continue on a bullish trend, with the resultant price rally expected to benefit StraightUp Resources (CSE: ST) (OTCQB: STUPF), a public company engaged in mineral exploration as well as the acquisition of mineral property assets with significant potential in North and South America.
Its North American assets are spread across the United States and Canada, with some of its properties – the RLX North and RLX South – located in the prolific Red Lake Mining District, which boasts a rich history having produced more than 30 million ounces of gold (https://ibn.fm/VS3rd).
The company also has other key projects – the Bear Head Gold Project and Ferdinand Gold Project – extending along the same Greenstone Belt into the neighboring Meen-Dempster Greenstone Belt located in Uchi Subprovince. In addition, in September, StraightUp acquired the historic West Cat Mine in Nevada that includes an unpatented lode mining claim in the historic Beatty Mountain Nevada Mining District (https://ibn.fm/bmGsN).
In October, the company secured a right of exclusivity to negotiate an agreement to acquire Premier Silver Corp (“PSC”), which owns one of the largest silver mining land packages as well as a processing plant in Peru, collectively known as the Mallay assets (https://ibn.fm/zq96t).
The property was developed, capitalized, and permitted by Buenaventura (NYSE: BVN), a multibillion-dollar globally recognized mining company that adheres to the highest industry standards. As an asset, Mallay offers a high level of operationality. It put PSC, which acquired it in 2020, in a unique position to provide the market-leveraged exposure to the silver industry. StraightUp’s potential acquisition of PSC is expected to have a similar effect.
With assets capable of producing silver and gold, StraightUp appears poised to benefit from the inflation-triggered interest in precious metals as investors, savers, and traders seek alternatives to cash.
For more information, visit the company’s website at www.StraightUpResources.com.
NOTE TO INVESTORS: The latest news and updates relating to STUPF are available in the company’s newsroom at https://ibn.fm/STUPF
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