Gold's Sell-off: Why The Market Is Wrong On Inflation & Fed Rates
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Gold and silver saw an unexpected sell-off recently, confusing many investors. This discussion explains why the market's initial reaction, driven by shifting Federal Reserve rate expectations and geopolitical events, is fundamentally flawed.
Uncover the critical difference between nominal and real interest rates and how rapidly accelerating inflation is set to make real rates deeply negative, a major bullish factor for precious metals. Understand how the ongoing war will fuel national debt, massive money printing, and dollar debasement, making gold an indispensable safeguard against economic turmoil.
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Transcript
Talk to us about where gold is now and what are the reasons that there's been a sell-off by some countries, uh, perhaps related to the war, and where you think gold is headed? Well, you know, gold counter-intuitively really sold off. It rallied briefly on Sunday night following the outbreak of the war on Saturday morning. And gold got to around 5500. And then it collapsed as low as 4100 on Monday morning. It's bounced back a bit, now it's around 4400, 4500, I think 4400. So, it's gone down. And silver percentage-wise has gone down more. Silver actually got up to like 120 at one point, and now it's back down below 70. Of course, these prices are much higher than they were a year ago, so gold and silver are still way up. Um, but I think the reason that they went down is I think the market really got off, caught off guard with how quickly the narrative on rate cuts shifted. So that now, it's not really expected that the Fed is going to cut rates maybe at all for the rest of the year, and now there's talk that the Fed might actually hike ...