One chart shows the price movements of a digital currency which I don't think comes in a physical form so there can be no different market price to the chart shown. Not sure if it's a digital value or a paper price shown though?
Possible, but it looks to me that ag already had a correction in the third quarter of 2020 while bitcoin had a parabolic rise. Maybe bitcoin is leading ag? The correlation between au and bitcoin isn't that clear though. Personally, I think gold is cheap. 1 btc which weighs nothing is worth more than half a kilobar! It’s still the safest bet.
Read somewhere that copper is going to outperform gold and aud is linked to copper so holding gold might not be so lucrative from the aud point of view. With all the electric vehicle hype, it’s likely copper will perform very well.
Re: David Hunter, here's Japan's historical inflation rate: Yep, that's right, nearly 40 years of accommodative monetary policy and fiscal stimulus and still no inflation.
Right, because we all know the Ministry of Internal Affairs publishes perfect inflation data. What's that you say? Housing affordability? Who cares!
Central Banks have been trying to get the inflation rate up for years and have acknowledged that they can’t. Instead of screaming “fake news”, cite your own inflation stats.
That doesn’t make any sense. The common mantra is that cheaper rates and money printing will lead to price inflation, it doesn’t. It leads to asset inflation.
Asset inflation is inflation. Inflation is not the increase is prices, but the printing of money. If we were supposed to get 2% deflation and their printing made it become 1% CPI increase, thats a 3% inflation... Corona was a massive deflationary crisis, money velocity went to shit. Thats the only reason prices didnt increase more. At some point people will start selling those assets and buy actual stuff with it, thats when all the built up inflation will hit prices
A price doesnt inflate, its goes up or down. What inflates is the money supply. Thats what they did in the 1920s and broke the 20$ gold oz standard to a 35$ oz and then the 1960s broke it completely so they had to depeg in order to not lose all of their gold and still be in debt. One other reason we're not getting massive panic and very high CPI is because theyre manipulating the price of gold and silver. But I think this year silver investment and industry demand will squeeze the bullion banks out of their shorts and push gold up with it to squeeze them ever worse
Not all commodity prices have mooned. If it were true that cheap rates, accommodative monetary policy and fiscal stimulus were inflationary then the cost of all goods would rise dramatically. Here's what is going to happen when the Federal government starts handing out more money to individuals and corporations. The smart people will buy assets which will drive up the price, the dumb people will piss it against the wall. The result? The gulf between asset rich and asset poor will continue to grow. There won't be hyperinflation, the economy will not crash nor reset - all that will happen is that some people will get richer whilst some will get poorer. If the government does it right though, then everyone may be better off and then there may be some inflationary pressures but we won't experience very high CPI figures.
Thats been happening since 1970 mate. Accelerating in the late 90s, then more after 2008 and now its just ridiculous. 900B stimulus plan and its only like 50B free money to people, the rest is just to their buddies. At some point the money from financial assets will trickle down to the economy and we will have massive inflation
Yes, it's the ABC but the author has got it right: snip https://www.abc.net.au/news/2019-04-24/inflation-rate-of-zero-not-as-good-as-it-sounds/11043100
