Commodity Trade Mantra

Posts Tagged ‘Rising 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.

Rising Inflation & Sagging Confidence in Central Banks will Catapult Gold Prices Higher

Inflation may surprise to the upside. Consumer prices are set to rise as oil rebounds, while low or negative interest rates and bond buying by central banks have failed to boost economies. Interest rate hikes are incredibly positive for gold prices, because of the existence of the huge QE “money ball” that sits at the Fed & other central banks. Gold prices need another rate hike from Janet to move higher.

Gold Rush Will End - Irrespective of Whether Brexit Or Bremain

An “In” vote is seen as quickly unwinding gold’s 5% gain in June, as appetite for risk rises. And while some see a “Leave” result as a risk-off event that could see gold rally, others see lower prices if the dollar rises & oil falls. Gold may also fall as it can be used as a source of cash to cover losses elsewhere. Sharp declines in equities could push investors to liquidate gold positions to free up capital.

The True Bearer of the Title ‘Risk Free Asset’ Should be Gold

The true bearer of the title ‘risk free asset’ should be gold – not T-bills or whatever other names government paper has. This is because gold is liquid under all market conditions. Silver is another excellent way to minimize your dependence on the goodwill of others. The former Bank of England head Lord Mervyn King offers good reasons for individual investors to buy & hold gold.

Get in on the Ground Floor of a New Bull Market in Gold

After a long, downward slide, gold prices have finally begun to climb higher. Right now is the perfect time to get back into gold and silver investments. And we have four recommendations to get you in on the ground floor. But does the price upswing of the past few months mean that we’re in for a new, longer-term era of strength in gold? Yes. Here’s why.

Inflation - The Fed's Nightmare Scenario Is Becoming Reality

Higher inflation is not a dream come true. It is the Fed’s worst possible nightmare. It will expose the error of their 8-year stimulus experiment & the Fed’s impotence in restoring health to an economy that it has turned into a walking zombie addicted to cheap money. If inflation catches fire now, with growth close to zero, the Fed will be completely incapable of controlling it.

Gold Was Up 73% Last Year!

The price of gold rose against ALL currencies in 2014 — except the US dollar. Yes, gold was up in the euro, Japanese yen, Swiss franc, Canadian dollar, British pound, Australian dollar, New Zealand dollar, Chinese renminbi, Indian rupee, Swedish krona, Brazilian real, Israeli shekel, and South Korean won.

RBI may keep Interest Rates Elevated on More than Estimated Inflation

While economic growth has almost halved to below 5% for the past 2 years, the worst slowdown for India since the 1980s, retail inflation has been averaging around 10%. Adding to inflation woes are damaged crops from recent non-seasonal heavy hail and rains & a possible El Nino weather threat.

Inflation Is Coming, What to Do? - Turn To Gold Now

History clearly shows there is a direct link between inflation and gold demand. When inflation jumps, or even when inflation expectations rise, investors turn to gold in greater numbers. And when gold demand rises, so do gold prices—you can guess what happens to gold stocks.

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