Bill Murphy from GATA.org, rejoins the show with commentary on the PMs sector. The US Treasury announced a $1 Trillion coin this week, to keep the national government cogs spinning, begging the question, what denomination will be next, $100 trillion? The fiasco conjures images of Zimbabwe, Weimar and more recently, the Bolivar.
Headlines are filling with a new term, "Shrinkflation," not to be confused with deflation, the moniker is slang for higher prices in tandem with smaller portion sizes, so the same box of cereal costs more, with the same sized box, but smaller content. Higher prices present a deeply worrisome scenario for the already strapped consumer.
Further evidence of global inflation continues to emerge from the energy sector, where WTIC recently soared over $80 this week with technical indicators suggesting an attempt at $100 could add further pressure to domestic inflation.
The next bull phase in the PMs sector could gain momentum from the Basel III Accord, which changed how Central Banks view gold on par with fiat money as a reserve currency for major financial institutions. Hard assets could mirror a crypto-market-like vertical ascent making the current price the ideal opportunity to diversify stock market profits into tangible, hard-assets.