Inflation is beginning to ramp up, what does this mean for gold and silver?

November 11 (King World News) – Peter Boockvar:  I included a chart in the CRB food index yesterday morning and during the trading day after the USDA ending stocks data came out (and were less than expected) corn rallied 3.8% to the highest since July 2019, soybeans by 3% to the highest since July 2016 and wheat by 1.8%.

INFLATION ALERT: Food Inflation Continues To Ramp

Strong Chinese imports has been a key catalyst here. Separately, aluminum is trading at the highest since March 2019. Crude oil has been the last commodity not to have joined the rally but that might be about to change as today it’s trading at a level last seen in September 1st. I repeat my belief that energy stocks will outperform FAANGM in the next two years.

INFLATION ALERT: Crude Oil Moving Higher

Another new record low mortgage rate of 2.98% was again not enough to lift purchase applications which continue to moderate. They fell 2.6% w/o/w and that is the 6th week in the past 7 of declines and they now sit at the lowest level since May. They are still up 16.5% y/o/y but that pace is slowing down too. I’m sure the lack of inventory is a factor, but I believe that price increases got too aggressive and some buyers are calling a time out, particularly the 1st time buyer. Refi’s were up by .6% w/o/w and 67% y/o/y. 

What Does This Mean For Gold & Silver?
King World News note:  The inflationary pressures are heating up at this point and that is extremely bullish for the gold and silver markets medium- to long-term. As both metals continue to consolidate their massive gains from 2020, frustration may be setting in for investors in the sector…

ALERT:
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This is what bull markets do — they test the patience of people and attempt to throw the weak investors out of the market. During times like this it is always a good idea to take a step back and look at the big picture, which is very bullish for gold and silver.

To listen to this is incredibly powerful audio interview where Jon Case issued a dire warning about the US and discusses the fragility of the global financial system as well as massive bull markets in gold and silver CLICK HERE OR ON THE IMAGE BELOW.

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