- Palisades Gold Radio
Tom welcomes back Lior Gantz back to the show. Lior is the founder and editor of Wealth Research Group. To subscribe to our newsletter and get notified of new shows, please visit http://palisadesradio.ca
Lior discusses the Fed’s policies on rates and the effect on gold. Inflation expectations are one reason we haven’t seen the bottom yet for gold. The market believes the Fed is under-estimating the impact of inflation. During 2020 we’ve seen many supply chain issues affecting commodities but silver has lagged. Silver being an industrial metal seems overdue for a rally. This rally may need to happen fairly soon before logistics improve. China is continuing to stockpile commodities. Powell has recently stressed that they have inflation under control. Lior believes these statements are indicative of serious concerns that they don’t have inflation under control. Various transitory components of inflation are causing deeper structural issues. We see these issues in rents and wages. Individuals are choosing different career options, going back to school, or starting small businesses.
Vaccine mandates are also having a significant impact on the labor force. Wages are also rising due to the lack of employees willing to fill jobs. Lior explains the two different types of inflation today. We see asset inflation in sectors like housing and also real-world inflation in goods and services. The global housing market is increasingly likely to remain expensive. He cautions that “We’re at the lowest point for money velocity since they began measuring it.” The March 2020 crash postponed a blow-off top by several years. While some sectors like crypto may be experiencing euphoria, most investors are being cautious. People are investing in stocks since they appear safer than bonds and can provide reasonable returns. Time Stamp References:
0:00 – Intro
0:29 – Gold & Higher Rates
8:16 – Silver Drivers
15:17 – Fed & Inflation
25:28 – Dual Inflation Concept
29:32 – Blow-Off Top?
33:50 – Comparing Crashes
39:18 – 2nd Term For Powell?
42:44 – Wrap Up
Talking Points From This Episode
– Fed’s policies and the effect on the gold market.
– Silver’s chance to rally but needs to do so soon.
– Powell and why inflation isn’t under control.
– Investor sentiment and risk in this environment.