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Inflation surges 9.1% in June, most since November 1981...why isn't gold up? 10/3/22 silver up 8.5%
Goldbully
Posts: 16,864 ✭✭✭✭✭
I was always taught that gold was a hedge against inflation. Well, inflation is soaring, but gold is not.
Anyone want to help me out?
edited to add: Silver up 8.5% today....October 3, 2022.
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Post removed , due to skirting the rules ( politics)
High dollar index is hurting PM prices. Weak euro is boosting dollar index. Look for no change any time soon.
Give Me Liberty or Give Me Debt
Perhaps this chart may indicate part of the problem:
The article is at:
https://wallstreetonparade.com/2022/06/report-jpmorgan-chase-and-citibank-hold-90-percent-of-all-gold-and-other-precious-metals-derivatives-held-by-all-u-s-banks/
The casino is open.... lots of paper games being played.
agree
I give away money. I collect money.
I don’t love money . I do love the Lord God.
Well at least you finally moved past the JPM are manipulating the prices conspiracy stage. A decade or so late but there's hope for you yet. RGDS!
The whole worlds off its rocker, buy Gold™.
lol
what makes you think the manipulation ever stopped?
Give Me Liberty or Give Me Debt
I'm long gold in Euro terms... where's Dennis Gartman? lol
No one is buying anything except gas and food. No purchasing excitement at all right now. In other words, no consumer confidence in anything.
Edit:
Removed post due to possible rule violation.
High dollar, low euro.... PM's will be low until dollar recedes. Cheers, RickO
not true. I'm buying on the way down and will sell in reverse order on the way back up. lol
Give Me Liberty or Give Me Debt
At some point exports will be hurt bad enough that the dollar masters will have to reign in the dollar (devaluation?). Gonna be difficult with the eurozone up in smoke. But that can't be a result of sanctions, right? lol
Give Me Liberty or Give Me Debt
Edit:
post removed :due to possible rule violation.
becuase cash is going to be king, you cant eat silver & gold.
In 6 to 12 months folks with cash sitting on sidelines will pick up deals in everything from coins, to gold, to cars, to houses, land , commercial property , art, boats, you name it . Been telling folks coming in shop for months now
Good thing they printed so much money.
Edit:
post removed :due to possible rule violation.
There has never been a single day in recorded history when you could not buy all the food you wanted with an adequate supply of silver or gold.
What do you sell?? In six to twelve months that cash will buy significantly less than it does today, barring a deflationary collapse. Is that what you're anticipating?
You can't eat cash either.
Well, technically, you can, but there is no nutritional value in it (and it likely has some toxins).
Even when there isn’t any food to buy? And it’s illegal to transact in gold and silver? I don’t think you understand how this will all play out. Which is par for the course on this board.
Cash doesn't even make good toilet paper. Just sayin'.
Worry is the interest you pay on a debt you may not owe.
Likely has some toxins ? count on it. When I was much younger I spent a summer taking bets at off track betting. People pulled out cash from EVERYWHERE!! Many times wet. I would say this was the first job I had where I had to wash my hands before I peed.
Is June the month social security bases their next years cost of living increase ? 9.1% raise sounds good to me.
look for a change in the calculation formula.
Give Me Liberty or Give Me Debt
Beginning Of The End For The Dollar's Irrepressible Rally?
"The result is that long-run Fed rate expectations are beginning to fall, even with aggressive hike bets for meetings to the end of the year. Long-run Fed expectations have given an excellent lead on the dollar, but now they are topping, the dollar may soon run out of steam."
Gold? BTFD
Give Me Liberty or Give Me Debt
Especially the new Canadian bills...
That blog doesn't mention anything about gold, just other fiat currencies.
Maybe that's why gold has performed so poorly?
Knowledge is the enemy of fear
Maybe that explains why there is a question mark after my comment "gold."
Don't play naive. You know why gold has performed poorly in dollar terms. That blog explains why that is about to change. LOL.
Give Me Liberty or Give Me Debt
Gold in dollar terms is ALL we care about.
But....gold in Euro terms is same level as Aug 2020....and since 2012 is only up 22% in Euro terms. That's 2% per year. Whoohoo!!!
Knowledge is the enemy of fear
The US Dollar relative to the rest of the world currencies and the demand for it to retire debt, is the reason.
It's gonna take hours to formulate an answer to what seems to be a simple question.
Buy and Sell gold for the right reasons 1. Do it for the money , the folding money.
2. See number (1) one.
The coming "FED Pivot" will do wonders for the price of gold. Likely to see it by year's end.
Give Me Liberty or Give Me Debt
if you want to stick purely with theory, the dollar has been strengthening against most major currencies. the dollar index has hit an over 20 year high recently.
perhaps one could ask why hasn't gold fallen more?
Larry Kudlow and Steve Forbes said inflation is probably closer to 11%, as they didn't include fuel and food increases to keep the number sub double digits.
and if one were to use the CPI formula from 1980 before the tweaking and adjusting for more favorable results began we are currently in an 18% inflation environment. Using this same formula inflation never exceeded 15% during the last inflation crisis that was resolved by raising interest rates to 20%.
So, if the FED is ineffectively fighting what they believe is 9% inflation, just how meaningless are they when inflation is actually twice as bad? Does this mean their efforts will be twice as ineffective? LOL
Give Me Liberty or Give Me Debt
Last time I bought a 18 pack cage free eggs few weeks ago $2.33 (they did call it a sale) yesterday I paid $5.29.
Where will inflation go after the Climate Emergency/Crisis EO gets inked probably this week? 15%? 20%?
My girls still pump out almost an egg a day. Down to 18 after a few predator attacks this winter but 13-16 eggs a day feeds the family and still gives us about 5 dozen a week to sell to neighbors and coworkers. They primarily free range so this time a year a 50lb bag of feed will last them a month easily. I buy the good non-gmo organic egg maker crumbles and a bag is running about $20 now ($17 pre pandemic). 1 week of egg sales covers the months feed. Figure my rewards for the effort are about 1/2ozt Au and all the farm fresh eggs we can eat throughout the year. RGDS!
The whole worlds off its rocker, buy Gold™.
Fed 4 folk this morning with a dozen eggs, pound of bacon, pack of English muffins and all the coffee they wanted for less than $12 total.
Knowledge is the enemy of fear
Who cleans up chicken shit ? Figure in labor.
Nature mostly. We do have to scrape out the coop once a month and dump it in the compost pile. Takes about 20 minutes, but well worth it for those vibrant orange farm fresh yolks. The gardens and orchard are far more labor intensive but as the saying goes "Country living ain't for sissies". RGDS!
The whole worlds off its rocker, buy Gold™.
Let me guess: you took 3 of your friends to the open door mission , all ate, and left $10 in the Free Will offering jar
Nor does gold.
I dont have 3 friends.😢
Knowledge is the enemy of fear
It's the old golden rule............whoever has the gold, makes the rules.
Disclaimer: I'm not a dealer, trader, grader, investor or professional numismatist. I'm just a hobbyist. (To protect me but mostly you! 🤣 )
Why is gold following the stock market down into the red?
Interest rates are continuing to climb.
Prices for goods continue to spiral higher.
Why isn't gold going up?
Just wonderin'.
Why is gold following the stock market down into the red?
Interest rates are continuing to climb.
Prices for goods continue to spiral higher.
Why isn't gold going up?
Because in a liquidity crisis, everything sells off. The stock market is only responding to the Fed's moves on interest rates, and it's going to take more than 75 basis points to knock out inflation. Congress isn't helping by spending money that we don't have on pet projects that are trending into the $trillions.
I knew it would happen.
Gold is priced in dollars. When dollar is up, gold is down. Dollar is at 20 year high, gold is at same price as 11 years ago.
Knowledge is the enemy of fear