With the price of gold and silver surging today, look at what is happening with the cost of living!

October 20 (King World News) – Peter Boockvar:  I’ve expressed my bullishness on commodities as part of my expectations for higher inflation in the coming year…

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Yesterday the CRB Food index closed at just under the highest level since August 2019 and based on where corn, soybeans and wheat are trading this morning, will likely close above today.

Food Costs Continue To Soar!

Soybeans in particular are trading at the highest since March 2018 and corn is above $4 per bushel for the 1st time since August 2019. Another round of a few trillion dollars of fiscal spending will only reinforce the inflation that is to come, if not already here. 

Also of note, the CRB raw industrials index closed yesterday at the highest point since May 2019.

CRB Raw Industrials Index Also Skyrocketing!

I’ll argue that commodity stocks outperform FAANGM over the next two years after a decade of dramatic underperformance. Copper as of this writing is trading at the highest level since June 2018.

And Copper Hits Highest Level In More Than 2 Years

As the world’s GDP is still below the 2019 level, much of this move higher is due to a crimp on the supply side. 

I usually refer to the implied inflation rate in the 10 yr TIPS but because the Fed is a large buyer of that maturity, let’s look at the implied rate 30 yrs out as it’s least influenced by the distortions of Fed policy. At 1.85%, that close yesterday is the highest since July 2019.

King World News note:  Keep in mind that this inflation is extremely bullish medium- to long-term for gold, silver, and the mining shares.

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Stunning Chart Of Stock Ownership, Plus Gold, Silver, Miners
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