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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%

GoldbullyGoldbully Posts: 16,789 ✭✭✭✭✭
edited October 3, 2022 4:50PM in Precious Metals

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?

https://finance.yahoo.com/news/june-cpi-preview-inflation-likely-surged-to-new-40-year-high-last-month-215233961.html?.tsrc=fin-notif

edited to add: Silver up 8.5% today....October 3, 2022.

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Comments

  • TwoSides2aCoinTwoSides2aCoin Posts: 43,743 ✭✭✭✭✭
    edited July 18, 2022 9:39PM

    Post removed , due to skirting the rules ( politics)

  • derrybderryb Posts: 36,006 ✭✭✭✭✭

    High dollar index is hurting PM prices. Weak euro is boosting dollar index. Look for no change any time soon.

    "Do you hear alarm bells ringing? Neither do I. And that’s a huge problem." - Simon Black

  • tincuptincup Posts: 4,719 ✭✭✭✭✭

    Perhaps this chart may indicate part of the problem:

    ----- kj
  • tincuptincup Posts: 4,719 ✭✭✭✭✭

    The casino is open.... lots of paper games being played.

    ----- kj
  • bidaskbidask Posts: 13,811 ✭✭✭✭✭

    @derryb said:
    High dollar index is hurting PM prices. Weak euro is boosting dollar index. Look for no change any time soon.

    agree

    I manage money. I earn money. I save money .
    I give away money. I collect money.
    I don’t love money . I do love the Lord God.




  • blitzdudeblitzdude Posts: 5,263 ✭✭✭✭✭

    @derryb said:
    High dollar index is hurting PM prices. Weak euro is boosting dollar index. Look for no change any time soon.

    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™.

  • derrybderryb Posts: 36,006 ✭✭✭✭✭

    "Do you hear alarm bells ringing? Neither do I. And that’s a huge problem." - Simon Black

  • meluaufeetmeluaufeet Posts: 746 ✭✭✭

    I'm long gold in Euro terms... where's Dennis Gartman? lol

  • ike126ike126 Posts: 802 ✭✭✭✭✭

    @blitzdude said:

    @derryb said:
    High dollar index is hurting PM prices. Weak euro is boosting dollar index. Look for no change any time soon.

    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!

  • GoldenageGoldenage Posts: 3,278 ✭✭✭✭✭

    No one is buying anything except gas and food. No purchasing excitement at all right now. In other words, no consumer confidence in anything.

  • TwoSides2aCoinTwoSides2aCoin Posts: 43,743 ✭✭✭✭✭
    edited July 18, 2022 9:40PM

    Edit:
    Removed post due to possible rule violation.

  • rickoricko Posts: 98,724 ✭✭✭✭✭

    High dollar, low euro.... PM's will be low until dollar recedes. Cheers, RickO

  • derrybderryb Posts: 36,006 ✭✭✭✭✭

    @Goldenage said:
    No one is buying anything except gas and food. No purchasing excitement at all right now. In other words, no consumer confidence in anything.

    not true. I'm buying on the way down and will sell in reverse order on the way back up. lol

    "Do you hear alarm bells ringing? Neither do I. And that’s a huge problem." - Simon Black

  • derrybderryb Posts: 36,006 ✭✭✭✭✭

    @ricko said:
    High dollar, low euro.... PM's will be low until dollar recedes. Cheers, RickO

    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

    "Do you hear alarm bells ringing? Neither do I. And that’s a huge problem." - Simon Black

  • TwoSides2aCoinTwoSides2aCoin Posts: 43,743 ✭✭✭✭✭
    edited July 18, 2022 9:42PM

    Edit:
    post removed :due to possible rule violation.

  • jdimmickjdimmick Posts: 9,573 ✭✭✭✭✭

    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

  • JimTylerJimTyler Posts: 2,984 ✭✭✭✭✭

    @jdimmick said:
    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.

  • TwoSides2aCoinTwoSides2aCoin Posts: 43,743 ✭✭✭✭✭
    edited July 18, 2022 9:43PM

    @JimTyler said:

    @jdimmick said:
    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.

  • conrad99conrad99 Posts: 300 ✭✭✭

    @jdimmick said:
    becuase cash is going to be king, you cant eat silver & gold.

    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.

    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

    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?

  • dcarrdcarr Posts: 7,877 ✭✭✭✭✭
    edited July 15, 2022 1:32AM

    @jdimmick said:
    because 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

    You can't eat cash either.

    Well, technically, you can, but there is no nutritional value in it (and it likely has some toxins).

  • rcmb3220rcmb3220 Posts: 1,108 ✭✭✭✭

    @conrad99 said:

    @jdimmick said:
    becuase cash is going to be king, you cant eat silver & gold.

    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.

    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

    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?

    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.

  • PerryHallPerryHall Posts: 45,170 ✭✭✭✭✭

    @dcarr said:

    @jdimmick said:
    because 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

    You can't eat cash either.

    Well, technically, you can, but there is no nutritional value in it (and it likely has some toxins).

    Cash doesn't even make good toilet paper. Just sayin'. ;)

    Worry is the interest you pay on a debt you may not owe.

  • JimTylerJimTyler Posts: 2,984 ✭✭✭✭✭

    @dcarr said:

    @jdimmick said:
    because 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

    You can't eat cash either.

    Well, technically, you can, but there is no nutritional value in it (and it likely has some toxins).

    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.

  • JimTylerJimTyler Posts: 2,984 ✭✭✭✭✭

    Is June the month social security bases their next years cost of living increase ? 9.1% raise sounds good to me.

  • derrybderryb Posts: 36,006 ✭✭✭✭✭
    edited July 16, 2022 4:29AM

    @JimTyler said:
    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.

    "Do you hear alarm bells ringing? Neither do I. And that’s a huge problem." - Simon Black

  • derrybderryb Posts: 36,006 ✭✭✭✭✭

    @ricko said:
    High dollar, low euro.... PM's will be low until dollar recedes. Cheers, RickO

    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

    "Do you hear alarm bells ringing? Neither do I. And that’s a huge problem." - Simon Black

  • taxmadtaxmad Posts: 960 ✭✭✭✭

    @PerryHall said:

    Cash doesn't even make good toilet paper. Just sayin'. ;)

    Especially the new Canadian bills...

  • cohodkcohodk Posts: 18,487 ✭✭✭✭✭

    @derryb said:

    @ricko said:
    High dollar, low euro.... PM's will be low until dollar recedes. Cheers, RickO

    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

    That blog doesn't mention anything about gold, just other fiat currencies.

    Maybe that's why gold has performed so poorly?

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • derrybderryb Posts: 36,006 ✭✭✭✭✭
    edited July 18, 2022 5:28AM

    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.

    "Do you hear alarm bells ringing? Neither do I. And that’s a huge problem." - Simon Black

  • cohodkcohodk Posts: 18,487 ✭✭✭✭✭

    @derryb said:
    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.

    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!!!

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • SoldiSoldi Posts: 2,012 ✭✭✭✭✭

    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.

  • derrybderryb Posts: 36,006 ✭✭✭✭✭

    The coming "FED Pivot" will do wonders for the price of gold. Likely to see it by year's end.

    "Do you hear alarm bells ringing? Neither do I. And that’s a huge problem." - Simon Black

  • MsMorrisineMsMorrisine Posts: 32,001 ✭✭✭✭✭

    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?

    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
  • morgansforevermorgansforever Posts: 8,425 ✭✭✭✭✭

    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.

    World coins FSHO Hundreds of successful BST transactions U.S. coins FSHO
  • derrybderryb Posts: 36,006 ✭✭✭✭✭
    edited July 24, 2022 6:07AM

    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

    "Do you hear alarm bells ringing? Neither do I. And that’s a huge problem." - Simon Black

  • JimTylerJimTyler Posts: 2,984 ✭✭✭✭✭

    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.

  • morgansforevermorgansforever Posts: 8,425 ✭✭✭✭✭
    edited July 24, 2022 5:56AM

    Where will inflation go after the Climate Emergency/Crisis EO gets inked probably this week? 15%? 20%?

    World coins FSHO Hundreds of successful BST transactions U.S. coins FSHO
  • blitzdudeblitzdude Posts: 5,263 ✭✭✭✭✭

    @JimTyler said:
    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.

    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™.

  • cohodkcohodk Posts: 18,487 ✭✭✭✭✭

    @JimTyler said:
    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.

    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.

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • JimTylerJimTyler Posts: 2,984 ✭✭✭✭✭

    @blitzdude said:

    @JimTyler said:
    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.

    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!

    Who cleans up chicken shit ? Figure in labor.

  • blitzdudeblitzdude Posts: 5,263 ✭✭✭✭✭

    @JimTyler said:

    @blitzdude said:

    @JimTyler said:
    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.

    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!

    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™.

  • TwoSides2aCoinTwoSides2aCoin Posts: 43,743 ✭✭✭✭✭

    @cohodk said:

    @JimTyler said:
    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.

    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.

    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 :love:

  • SmudgeSmudge Posts: 9,150 ✭✭✭✭✭

    @PerryHall said:

    @dcarr said:

    @jdimmick said:
    because 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

    You can't eat cash either.

    Well, technically, you can, but there is no nutritional value in it (and it likely has some toxins).

    Cash doesn't even make good toilet paper. Just sayin'. ;)

    Nor does gold.

  • cohodkcohodk Posts: 18,487 ✭✭✭✭✭

    @TwoSides2aCoin said:

    @cohodk said:

    @JimTyler said:
    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.

    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.

    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 :love:

    I dont have 3 friends.😢

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • OAKSTAROAKSTAR Posts: 5,385 ✭✭✭✭✭

    @Goldbully said:
    I was always taught that gold was a hedge against inflation. Well, inflation is soaring, but gold is not.

    Inflation surges 9.1% in June, most since November 1981....why isn't gold up?

    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! 🤣 )

  • GoldbullyGoldbully Posts: 16,789 ✭✭✭✭✭

    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'.

  • jmski52jmski52 Posts: 22,263 ✭✭✭✭✭
    edited September 19, 2022 8:46AM

    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.

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • cohodkcohodk Posts: 18,487 ✭✭✭✭✭
    edited September 20, 2022 2:18AM

    @Goldbully said:
    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'.

    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.

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

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