If there is a bright side to this scenario, it lies in the implication that a debt deflation more destructive than consumer inflation we are likely to experience is a while longer in coming.
There is both bullish and bearish potential for silver. Note the negative divergence between gold and silver as gold soared to new highs. It is a potential bad sign.
The firming Dollar suggests the Fed’s foot is “expected” to stay on the interest rate pedal. The Bond, Euro, Gold, and the S&P 500 (BEGOS) Markets are down except for Oil.
Investors can hedge some of this selloff risk in counter-moving gold and its miners’ stocks, which tend to surge on balance when stock markets materially weaken.
When I can earn 5-6% on a certificate of deposit (CD), why would I want to own gold? Inflation is still here. If the dollar drops, then I want to own gold.
Except for energy price, inflation in the month of August should fall. I still expect a pause in interest rate by the Federal Reserve in its meeting on 20th September.
I get so many people saying, "Ira, when is the time to buy gold?" It isn't yet. It'll be the time when the Fed says that it's through with the rate hikes. The market is saying the Fed's not done.
