Inflation is squeezing American budgets to the breaking point.
According to a LendingClub survey, the number of Americans living paycheck to paycheck is nearing record levels.
Air continues to seep out of the housing bubble blown up with the Fed’s artificially low interest rates in the wake of the pandemic.
Sales of previously owned homes fell by 1.5% in September, according to a National Association of Realtors report. It was the eighth straight month of declining home sales.
The US government ran a $1.38 trillion budget deficit in fiscal 2022 despite government receipts at near-record levels. This further highlights the federal government’s out-of-control spending problem. It’s also a big problem for the Fed as it tries to fight inflation.
Gold is nature’s money.
Aristotle listed four characteristics of sound money: it must be durable, portable, divisible, and have intrinsic value. Gold possesses all of these characteristics, which is why gold has served as money for thousands of years.
You’re making more money. But you can’t buy as much stuff.
Why?
Because inflation continues to eat away at your wages.
Although gold has been one of the best-performing assets in 2022, it has faced significant headwinds due to rising interest rates and a strong dollar. Members of a panel discussion during the London Bullion Market Association’s (LBMA) annual precious metals conference agreed that gold and silver prices may still face headwinds in the near term as investors continue to anticipate an aggressive Federal Reserve fight against inflation. But they were bullish on the long-term potential of the precious metals market.
Gold is migrating from the West to the East.
As Bloomberg described it, many western investors – particularly at the institutional level – are dumping bullion. Meanwhile, Asian buyers are taking advantage of lower prices to snap up less expensive jewelry, coins, and bars.
Producer price data for September was bad news for people looking for relief from rising prices.
The Producer Price Index (PPI) rose by 0.4%, doubling the 0.2% projected increase, according to data released by the Bureau of Labor Statistics (BLS).
In a series of tweets, Rich Dad Poor Dad author Robert Kiyosaki said now is a great time to buy silver.
Kiyosaki predicted that the dollar will ultimately crash when the Fed pivots and surrenders to inflation.
