Why high inflation numbers might be bad for silver in the immediate short term

Discussion

Increased inflation will lead to fears that the fed will increase interest rates. This will strengthen the dollar, and the bots will get rid of precious metals as they are pricing in the interest rise.

Thoughts?

Posted May 28, 2021, 12:28 PM UTC

3725
Strugelabs🦍 Silverback•

Buy more

9
FrustPerOP•

Did buy more today actually. Maybe I’ll pick up some miners as well

9
Gen_Xtard•

It’s the simplicity that makes it so brilliant

3
Doc3b:longjohnsilver: Long John Silver•

Possible. However smart money ( big money ) will realize that the fed just can’t meaningfully raise rates of our nation goes belly up.

8
FistsFullOfMetal•

^^ this right here.. the going concern of our nation is dependent on cheap debt.

2
FrustPerOP•

I agree, but I also think some are adamant that the fed will hike rates if inflation goes ballistic

2
seeohenareayedee•

The problem with that now is that what, like 30% of companies are zombies? We can't really have that many companies go under at the same time.

4
SirBlaadje•

There is no room for higher interest rates Just look at the rent they’re paying on the debt now. Al they can do is make the market believe that they are willing to raise the interest rate

1
FrustPerOP•

I don’t disagree. I’m simply observing trends in the market, and clearly, some of the algorithms think there is room for rates to rise, why else would the dollar strengthen?

2
SirBlaadje•

Force of habit?, whenever there is trouble money flees to the dollar

But I don’t see how they can raise interest rates The current debt interest is already to much

1
Bayern4bullion1860•

And we will buy it up

They will never get it back 😁

7
LvonKingsbridge•

Exactly. Silver will be on sale! Let it drop, we'll pick it up!

7
Gen_Xtard•

Who knows what will happen if there is genuine shortage of physical product. The bots might sell futures and the spot might fall but the Sprott price will continue to rise and physical product will too. Interesting times ahead.

5
FrustPerOP•

Read the title “immediate short term” 🥳

3
Gen_Xtard•

No I will not read the title I will just write random things as I please

3
FrustPerOP•

As of course is your right 😀

3
FistsFullOfMetal•

nobody thinks they will raise rates.. powell even said they would let inflation run hot through 2022 at earliest.

4
FrustPerOP•

The bots and algorithms might. The point is that when they don’t actually raise rates the price will launch

2
Gen_Xtard•

I’m still learning but I thought the reverse repo market was spiking because of excess cash reserves in banks being forced to buy treasuries as not to incur interest which in turn keeps interest rates down and the DXY above 90. But it’s all making me dizzy so I’m just gunna buy some silver

1
[deleted]•

Fed can't raise rates

3
Agent_Argenti•

That is correct.

Even though the fed cannot do anything if they tried, it is the belief they can raise interest rates to control inflation which is causing the beatdowns. Once folks wake up realize that this is impossible it is all over.

3
Frygidal•

In a very short term it may happen but interest rates were around 3% when silver peaked last time and I don't think we will see rates at 3% anytime soon

2
tothemoonandback01Silver Surfer 🏄•

This is the way 🦍🦾🥈🚀🌙

2

Physical prices won’t go down much as premiums are climbing. So, buy hand over fist while it’s still available. Paper price doesn’t matter. They are doing us a favor by suppressing it. That’s the bottom line.

2
YouTubeKook•

they raise rates, the economy will collapse even faster,

1