But but … how can this be with silver breaking out?? I understand bonds are “smarter” than silver but can they both be right? Are we talking the monetary aspects of silver dominating then? Thank Gary!
Gary April 5, 2023
I think silver has acted more like a precious metal than a commodity since 2020, much like gold. That said, when the real deflationary pressure exerts I don’t expect silver to continue stronger than gold. Instead, the opposite.
Gary April 5, 2023
Indeed, gold may also get dinged. But it if liquidity is draining from markets it would go up in RELATION to most other assets.
Bart April 5, 2023
The eternal discussion. Will it all end in deflation or (hyper)inflation? The Roman empire fell when they started to water down the money supply. Gold coins with copper and silver coins with zinc.
Gary April 5, 2023
Exactly. One will bring on the other. Right now I am looking at a deflationary episode as a lever. That is what it has been all along the orderly continuum. The problem now is that broken continuum. Does it mean the next inflation will be more intense or does it mean that there is a lot of room for bubble implosion before they reach for that lever again?
But but … how can this be with silver breaking out?? I understand bonds are “smarter” than silver but can they both be right? Are we talking the monetary aspects of silver dominating then? Thank Gary!
I think silver has acted more like a precious metal than a commodity since 2020, much like gold. That said, when the real deflationary pressure exerts I don’t expect silver to continue stronger than gold. Instead, the opposite.
Indeed, gold may also get dinged. But it if liquidity is draining from markets it would go up in RELATION to most other assets.
The eternal discussion. Will it all end in deflation or (hyper)inflation? The Roman empire fell when they started to water down the money supply. Gold coins with copper and silver coins with zinc.
Exactly. One will bring on the other. Right now I am looking at a deflationary episode as a lever. That is what it has been all along the orderly continuum. The problem now is that broken continuum. Does it mean the next inflation will be more intense or does it mean that there is a lot of room for bubble implosion before they reach for that lever again?