Gold Price and Inflation
gold nugget specimen
Gold is higher for one important reason inflation, and while others are covering their ears with their hands and saying no, no, no, no, there are not signs of inflation, I absolutely disagree with them. We are seeing inflation!
Take a walk in the supermarkets and check out the products companies are selling, they are already feeling the punch of higher commodity prices, they are shrinking their boxes and cans but prices for such items remain the same. Go out to eat, a 8 oz steak meal that cost last year 14.99 is now a 6 oz steak meal for the same price of 14.99…a can of foffee 11.5 oz was 1.99 on sale last year, it is now 11.3 oz for the same price, cereal boxes are also shrinking.
Inflation is creeping up slowly, that is how it starts, and if it is not nip in the butt right away it can get out of control.
What is going to send the market lower? I mean we had the horrible unemployment report and nada? what kind of news? seems to me all the bad economic news are out here already, earnings are done…….the stimulus will continue, the spending will continue, the printing will continue, all good for stocks until all the liquidity is drain out of the market. I believe any strenghting in the dollar will be only temporary, this adm and the fed are basically keeping this market moving higher with their inflated economic numbers and positive comments, so as long as this market has fuel, it will continue to move higher, until there is no more fuel and reality bites once again. Then the rubber band will snap and the W will be formed. Just make sure when that does happens you are not left holding the bag.
Inflation was coming anyway, it’s been a while since we’ve had one and it’s always a cycle.
Everyone just be careful with what you’re buying and what you’re selling. Sometimes being conservative is a good thing.