Ronald Stöferle: Our Inflation Signal Just Reached Maximum

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Ronald-Peter Stöferle discusses why recessions can be good for precious metals.  They are monitoring various leading inflation indicators which they say have reached a maximum. They document this in their report which you can find here.

There is massive inflation beginning to show up, and they detail that in the report. This year they have identified three significant changes.

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Globally central bank monetary policy seems to be growing hawkish as they tighten policy.  This year the Fed will reduce their balance sheet by 430 billion.  The liquidity that we all got used to is ending and people are at risk of underestimating the effects of this tightening.

Secondly, de-dollarization continues with countries like Russia having sold a lot of treasuries and continue to accumulate gold. The Petro-Yuan is now a major factor that helps countries to circumvent the US Dollar.

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Lastly, there is a technological shift with new technology such as bitcoin and cryptocurrencies. He feels that they are just competition for gold and could become a potent tool for improving the usability of gold.


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