Inflation Soars...And Gold DROPS???

RichR

What gives...this morning, inflation was reported at much more elevated levels than anticipated (both core and CPI), and gold fails to rise...and in fact drops slightly...what gives?

That violates Economics 101.

jmski52

It must be the worldwide groundswell of confidence in the U.S. dollar.

Or the PPT, take your pick.

Can you post a link to the inflation data?

AbesNeighbor

Gold is a leading indicator.... The current inflation was reflected in its rise months ago... Hold on to it for the next round!!

konsole

Its hard to believe the people that say precious metals will go way way up in price, when the prices seem to always go with oil. When oil goes up so will precious metals, and vice versa and with oil maxing out around $150 and gold at $1000 at about the same time, its hard to believe that precious metals will ever get past their recent highs when oil seemingly will not get up to that $150 mark atleast anytime soon. Maybe oil and metals are related to something else but until they start behaving indifferent of each other I have a tough time seeing how the metals could rocket up to even new highs anytime soon.

57loaded

COMEX gold is inverse with the USD index, which is 57% in EURO

not oil, not inflation (yet)

mrearlygold

Obviously a lot of people here haven't experienced the end of the 89, or 79 bull markets. Remember when generic ms-65 morgan dollars were a g-note?

And you couldn't get them?

One of my colleagues at Heritage had a customer who wanted if I remember correctly 1,000 MS-65 Morgans when they were at the top, saying "they're going to 2 grand they're going to 2 grand!" The order couldn't be filled so they "settled" for a couple thousand MS-64's and 63's.

The market collapsed .

I was into early 10's and Patterns when all that was happening. Whew!

I also remember a doctor coming into my shop back in 1980 looking to "stock up" when gold was way high and wondered why I wanted money up front on any gold orders. He kept saying "it's just getting started"! If I remember correctly he took a 2nd mortgage to finance his purchases. Never heard from him after the drop.

I had purchased 10,000 oz's of silver, between $5.50 and $7.50 from a company in Ft Lauderdale Fla ( I was in NJ and had never even seen Ft Lauderdale at that point). I called the broker to sell when silver was 32 bucks. He told me I was an a-hole, and that it was going to 100. I said, yup so you should be happy to own it at 32. He hung up. His sales manager hung up too. I flew down with my financial partner from Brooklyn . We were both very angry. Got there and everybody was in a "meeting". It got very ugly and finally Kenny had the sales manager in a chokehold and told me "Tommy go and cash this thing while the sales manager whimpered and he put his finger in the guys face and told him "you better hope that check is good or you go out the window".

I went to the back and of course they didn't have that much cash on hand. Cleaned out what they had and they wired the rest. I called up to the company and reported that I had the money.

We went to lunch. I bought a Sea Ray Weekender at a place called Captains Cove. Flew back to Jersey and bought a demo Corvette at Malcolm Konner Chevy . Went back to Fla ( REALLY liked Ft Lauderdale and was only 25 years old.....at such an age who wouldn't like Lauderdale back then? Heheh ) Had a ball.

Bought silver futures again a couple years later, when Anwar Sadat was murdered. Thought, great, middle east turmoil has to turn this 12 dollar+ an oz silver into significantly more. Got a margin call a couple days later. Lost it all.

Never speculated in that game again.