Commodity Trade Mantra

Posts Tagged ‘Consumer Price Inflation’

Inflation - Difficult to Move, But Once Moving, Hard to Control

Three key measures of inflation have recently lurched across the Fed’s threshold of 2%. The recent pickup in gas prices is set to have an even sharper upward impact on the consumer price inflation basket. Inflation can really spin out of control very quickly. If it happens, it would happen very quickly. Inflation is like a supertanker: Hard to get moving. But once moving, hard to stop.

A Record Silver Price Rise is Imminent - Can You Guess the High?

At the apex of its last secular bull market in 1980, the silver-gold ratio weighed in at a hefty 14:1. If silver only got down to a 30:1 ratio, this would price our model at over $300/troy ounce. Leaving the ratio aside altogether and simply considering the 1980 inflation-adjusted price by itself would project a silver price today of more than $150 an ounce.

Central Banks are Buying Gold and Hedging Against their Own Policies

It is not surprising that central banks were adding to their gold reserves in 2015, but it is interesting that central banks have been on an unprecedented spree of creating money out of thin air. So while many investors were not enthusiastic about gold, central bankers saw a need. It seems that central bankers who are buying gold are hedging against their own policies.

Why Central Banks Are Pressing Investors To Hold Gold

Since their lows in March 2009, both the S&P 500 & German DAX have had triple digit gains of almost +170%. At the same time, real economies have more or less stagnated. In the meantime, the price of gold has increased by 21% during the same period. Which asset do you think is more at risk of being in bubble territory? Which one do you think has a bigger upside?

Gold Prices and the Gibson’s Paradox Implications

The flight of speculative capital from falling markets has to go somewhere, particularly if cash balances held in the banks are at a growing risk from systemic default. The Gibson’s Paradox tells us that these are the conditions for commodities to become the safe haven of choice for the highest levels of speculative money ever recorded since fiat currencies dispensed with the gold standard.

Gold Prices Benefit From Economic Sins

Governments spend paper currencies as if tomorrow will never come, believe debts can increase forever, more money will always be available & debts can be rolled over forever. Such economic sins ultimately hurt people & economies. Gold has & always will protect people from inflation, wars & irresponsible governments.

What could push the Price of Gold Lower OR Higher

Did gold prices reach an intermediate top in 2011 based on QE, dollar weakness, and high demand, correct for 2.5 years, and then begin a rally likely to persist through the end of the decade? OR – Did gold reach a generational peak in 2011 and subsequently turn down for a decade or two?

Misleading Silver Investors On Shortsighted And Incorrect Analysis

There’s a lot of shortsighted and incorrect silver analysis out there, so its imperative that you consider the information in this article. Analysts who gauge the value of gold and silver by a Fiat Monetary System have no idea of the true value of the precious metals when the systems comes down.

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