I do not buy the argument presented.
Gold and Silver have shown virtually no net movement in the past year. Individual markets and shipping costs had some major imbalances, but lumber, housing, residential lending have made progress on a “shocking” rate change. The “shocking” is why I think the central bankers might have just chanced upon the corrective action. Cool the speculative markets before the investor class finds an angle to distort markets and allow a ton of other industries a breath to catch up. Auto and especially used auto prices have been insane.
A year of slowdown brings everything from Beef to Lumber back under some control. The glut will worry the central bankers with the spectar of year over year deflation.
I predict one year from now, 4% on the 10 year, 4.25% on 30 year Mortgages, and what California, Nashville and New Jersey considers a housing crash and the midwest consider a market normalization.
There is a entire generation of consumers who never have had to worry about auto rates and housing rates in lending. A 12 month primer on economic policy was called for.
"The glut will worry the central bankers with the spectar of year over year deflation."
Deflationary Tsunami On Deck: A “Tidal Wave” Of Discounts And Crashing Prices
Agreed. I bought silver at $33 an ounce when Obama took office believing his fiscal policies would cause inflation. I have been a bag holder since that time, with a 35% loss.
Gold is entirely different. Look at which countries are purchasing and have purchased larger amounts of gold and other precious metals. That market has been and is completely manipulated by plunge protection teams. They keep the price banded. That will only pay until they run out of options.