Silver and Inflation
February 14, 2017
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Inflation is picking up around the globe, and it’s not “transitory” this time. Inflation on a secular basis bottomed last Spring. As we move thru the year, there will be more and more recognition of this. Commodities bottomed in January thru March 2016, the big trend is up. The Treasury yield market bottomed in 2011 on the short end and 2016 on the long end. In the big picture, the rising interest rates will help to continue pushing inflation higher in sort of a symbiotic relationship. The long term outlook for inflation is one of the reasons for my approach late last year to focus on buying silver, and not gold. Silver really enjoys the inflation. And food inflation and agriculture problems are going to be serious situations. The inflation is starting to show up around the world as 3 reports out today show it is spreading. In Germany where they still have memories of Weimar inflation, they are not happy with Mario Draghi, as wholesale prices rose the most in 5 years in January. And Chinese inflation for producers picked up to more than 5 year highs. While in the US, the always trustworthy NY Fed came out with their inflation expectations survey, which showed inflation expectations at 20 month highs. Even after bottoming a year ago, this is still the early stages of the inflation. Mrs. Yellen thinks she can turn a few knobs, and adjust a few levers, so the inflation will just be “transistory”. Sorry Janet, not this time.
Trader Scott has been involved with markets for over twenty years. Initially he was an individual floor trader and member of the Midwest Stock Exchange, which then led to a much better opportunity at the Chicago Board Options Exchange. By his early 30’s, he had become very successful in markets, but a health situation caused him to back away from the grind of being a full time floor trader. During this time away from markets, Scott was completely focused on educating himself about true overall health and natural healing which remains a passion to this day. Scott returned to markets over fifteen years ago where he continues as an independent trader.