Latest / SILVER / GOLD / $UFD Meme Coin Investing & Global Economics / π‘ Forget Fed Cuts: Here Is The REAL Driver For Gold & Silver π #shorts
Transcript
- 0:00I learned something, discovered something, thought of something
- 0:03last night that, that it, it relates to what everybody's
- 0:06talking about right now in the gold and silver market.
- 0:10And they're wrong, OK, And I'll explain to you why and I'm not
- 0:13and, and, and, and prove me wrong if you believe I'm wrong
- 0:17about this. But everybody's talking about
- 0:20this, right? Interest rates, the Fed interest
- 0:23rates, and everybody's talking about this, right?
- 0:26Inflation, guys. Here's the kind of the common,
- 0:31the common thinking right now that if you have interest rates
- 0:34here and inflation here and they're about equal right now,
- 0:38won't be at that over there. We go at about, let's say 3 1/2
- 0:41percent, OK? Interest rates are 3 1/2% and
- 0:44inflation's at 3 1/2 percent. Everybody wants interest rates
- 0:49to go down, OK? That's going to be good for gold
- 0:52and silver if the Fed cuts rates, right?
- 0:54Why? Because it creates this gap, the
- 0:57gap between the interest rate in the inflation rate, right?
- 1:01That gap, that's called negative real interest rates.
- 1:05But now we're in the situation where everybody thinks the Fed
- 1:08is going to hold rates steady, right?
- 1:11And that's bad for gold, bad for silver.
- 1:14Well, no, because if inflation goes up, OK, it creates that
- 1:20same gap. Inflation, whether you do it
- 1:23like this, where inflation's higher than the interest rates
- 1:26or you have inflation go up, OK, it creates that same gap where
- 1:32the inflation rate is higher than the interest rate, that
- 1:36creates negative real interest rates.
- 1:39That's not the big thing, OK? We've talked about that before,
- 1:42but that's critical for us to understand.
- 1:45We don't need the Fed to cut rates for gold and silver to go
- 1:49up as long as that gap, right? Whether it's down here or up
- 1:53here, right? Where inflation is higher than
- 1:57interest rates exist, that is going to be good for the price
- 2:00of gold and.