James Turk – This Is What Really Triggered The Massive Spike In Gold & Silver Today
James Turk – This Is What Really Triggered The Massive Spike In Gold & Silver Today from King World News
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With gold and silver surging strongly, James Turk spoke with King World News about what really triggered the massive spike in gold and silver today.
Precious Metals Spike
By James Turk
February 14 (King World News) – James Turk: “Today was a very important day for gold and silver, Eric. The reaction in their prices to the CPI released earlier today provides us with some very valuable insight into the state of the precious metals market. And this insight is bullish for both precious metals…
The CPI number came in higher than expected, which shows that even by the government’s own calculation, inflation is worsening. And we all know that inflation is a lot higher than what the government reports, so the purchasing power of the dollar is being stealthily eroded even more than what is reported.
But there are two things that I found to be the really interesting about this CPI report.
Two Different Roads
The first is the prevailing sentiment. Before the CPI was released, commentary on the precious metals took two different roads.
If the CPI was worse than expected, the Fed would raise interest rates which would be bad news for gold and silver. If however, the government’s inflation report came in less than expected, it would be bad news for gold and silver because no one would need to buy the metal to protect one’s purchasing power from inflation.
So there you have it. Conventional wisdom had it that gold could not win. No matter what CPI was reported, gold and silver would get hit, and they did. But here’s the important message from this conventional wisdom.