Inflation Play?

kmiklas

kmiklas

What's the best inflation play(s) in today's market?

Traditionally it's been gold, or seven silver, but spot price doesn't really make sense now. Physical gold is demanding a premium of $200+ over spot, and I can't help but wonder if it's being manipulated.

Commodity futures (copper, coffee) also fell, which was a surprise to me. I'd expect a premium on these. Perhaps a good buy?

If one held a belief that inflation would soon rear its ugly head, what are some decent ways to leverage this belief?
 
kmiklas said:
What's the best inflation play(s) in today's market?

Traditionally it's been gold, or seven silver, but spot price doesn't really make sense now. Physical gold is demanding a premium of $200+ over spot, and I can't help but wonder if it's being manipulated.

Commodity futures (copper, coffee) also fell, which was a surprise to me. I'd expect a premium on these. Perhaps a good buy?

If one held a belief that inflation would soon rear its ugly head, what are some decent ways to leverage this belief?
More...

I was just about to start a similar thread....

For some reason things are seeming counterintuitive. Like if Core inflation picks up, that the USD will be stronger.
 
farmerjohn1324 said:
I was just about to start a similar thread....

For some reason things are seeming counterintuitive. Like if Core inflation picks up, that the USD will be stronger.
More...
Yes... counterintuitive. This is a result of the "artificial" liquidity (as my friend and I like to call it) in the system, with more being added every day--liquidity injected by the Fed et alia.

In a free market, current price moves would be irrational, bizarre... almost insane, but they become entirely rational and normal if these artificial revenue streams are taken into account.

But they can't keep printing money forever--some day inflation will rear its ugly head, and then the hawks will start to eat the doves. According to Mr. Powell, this day will be in 2023, or even 2022... but will it be sooner?

We'd all better damn well properly position ourselves before that happens. Personally, I'd rather be a early than late.
 
kmiklas said:
Yes... counterintuitive. This is a result of the "artificial" liquidity (as my friend and I like to call it) in the system, with more being added every day--liquidity injected by the Fed et alia.

In a free market, current price moves would be irrational, bizarre... almost insane, but they become entirely rational and normal if these artificial revenue streams are taken into account.

But they can't keep printing money forever--some day inflation will rear its ugly head, and then the hawks will start to eat the doves. According to Mr. Powell, this day will be in 2023, or even 2022... but will it be sooner?

We'd all better damn well have our positions in place before that happens. I'd rather be a few months early than late.
More...

March 26th is next Core PCE CPI release.
 
kmiklas said:
Commodity futures (copper, coffee) also fell, which was a surprise to me.
More...

Commodities might be a good inflation play but look how far they've run in the past 12 months.
Sizable pullbacks shouldn't be too surprising.

commodities.png
 
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