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The Call Is Coming From Inside the House: Inflation Is Already Here

Seeking Alpha  ( Original )
MAR 1, 2018

The recent indictment of several traders caught manipulating the precious metals markets was met with a relative shrug by the overall markets. Evidence that inflation is not only on the way, but already here, continues to mount.

There is so much perception masquerading as reality right now that it can be easy to forget that, in the end, all of the Fed gamesmanship and market manipulation will fall away and we will be left with the true underlying values of assets.

Gold and silver, the most reliable stores of value there are, are the best bets to come out on top when the dust settles and the rest of the investment world is left to nurse a monstrous risk-asset-bubble-deflation hangover.

  • The grain market, soybeans, corn and wheat have seen a substantial rally, confirming that the inflation monster is beginning to infiltrate the commodity markets.
  • In terms of inflation, it is not a case of something that is coming; inflation is already here.
  • Right now may be the perfect time to look at precious metals, which are offering a tremendous profit potential.

Precious metals markets have been completely ignored, largely due to the tremendous manipulation that has—and is—taking place in the paper precious metal markets, engineered by central and commercial banks, which can sell huge amounts of physical silver and gold that do not exist, in some cases 10 to 1 to the actual availability of the metal itself.

The machinations of the Fed and central banks have kept the US public away from the precious metals markets. Their manipulation to keep gold and silver prices low has also wiped out many gold and silver mining companies; even more so now with the threat of rising interest rates, which will drive mining companies with heavy debt into bankruptcy.

This, in turn, will create an even graver shortage of physical gold and silver. Debt costs are beginning to be a key factor in the economic growth of many mining companies. A key factor affecting the future of many mining companies will be the rate at which interest rates rise.

ORIGINAL SOURCE: Inflation: It Is Not A Case Of Something That Is Coming; Inflation Is Already Here by Scott MacDonald at Seeking Alpha on 2/26/18