Is Price Inflation Guaranteed Now? These Two Charts Say Yes Jeff Clark, Senior Analyst, GoldSilver.com
NOV 12, 2020
There’s been lots of talk about the possibility of price inflation in response to the surge in monetary and fiscal stimulus. It’s an important consideration for us bullion investors, as one of the biggest catalysts for gold and silver is the onset of higher consumer prices. And you gotta own your inflation protection before it sets in.
But the CPI has remained stubbornly low. This despite the Fed trying to produce higher inflation. And despite most people’s experience of higher consumer prices.
As some of you on Twitter know, I lost my father last week (you can see my tribute to my gold prospector Dad here). I was absent from the market for a couple weeks and noticed upon my return that despite the volatility and market-moving news, gold and silver prices really hadn’t changed all that much. I can imagine myself wondering how event xx or yy would have impacted the gold price at the time—but those ended up being transitory things only. What matters more are the big picture forces—and inflation is one of the biggest.
Let’s take a look at some research that shows the correlation between two specific monetary conditions and their direct link to a rise in inflation…
Inflation Reality #1: History Shows High Levels of Debt Lead To Inflation
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