Chart of the Day: "Inflation Hedge"

JC Parets
June 6, 2022

The troubles don't stop coming for investors who were deceived into believing that gold was a hedge against inflation.

Gold is at the same price it was 2 years ago.

Heck, Gold is still at the same price it was 11 years ago.

Meanwhile, Silver is down 40% from that same point.

Inflation hedge?

Nothing could be further from the truth.

Look how gold and silver are doing relative to actual inflation hedges:

Commodities tend to do well during these inflationary periods.

Maybe the market is proving to us that precious metals are not commodities after all.

It could be possible that they're currencies, just not very good ones.

It's the US Dollar and it's real commodities.

Those are the assets working.

Gold is not. And Silver is just a much worse version of Gold.

These are the facts.

We're seeing new multi-year lows in both Gold and Silver relative to actual commodities.

Don't shoot the messenger. I'm fully aware that there is a group of people who choose to ignore price that are really sensitive about this sort of thing.

God forbid you say something negative about their precious gold bars, even if it's the absolute truth.

And when it comes to the prices of assets, that's the only truth that exists. It's all that matters. The rest is glorified gossip.

Just the facts my friends.

And if you're too sensitive about this stuff, please don't email me with your conspiracy theories.

I just don't care.

But if you have something constructive to say, I'd love to hear it.

My lines are open: Call in (323) 421-7910 or email me here.

Have a great week!

- JC

 

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