For the past two years at this juncture, the Precious Metals Sector has risen sharply in a month-long up cycle for Silver and with the high inflation expectations going forward a similar ramp up for the Precious Metals Sector is a real possibility.
By Lorimer Wilson and Goldrunner
According to the New York Fed’s Survey of Consumer Expectations:
- the under-40 crowd expects inflation to hit 3.8% a year from now,
- the 40-60-year-olds expect inflation of 4.7% and
- the over-60 crowd expects inflation to hit 5.7%
- for an average inflation expectations for one year from now of 4.8%.
These inflation expectations tracked by the New York Fed roughly match the inflation expectations tracked by the University of Michigan’s Survey of Consumers, whose latest reading jumped to 4.6%.
The Fed and the government claims, echoed by the major news outlets, that this bout of inflation is just “temporary” or “transitory” are resonating with consumers to some extent as inflation expectations for three years from now have jumped, but not as high, reaching nearly 3.57% in May and 3.55% in June.
With such high inflation expectations, in combination with the 30-day up cycle (July 12th to August 11th) for Silver, Goldrunner’s fractal work suggests that Silver might start a run up to $34 per troy ounce and perhaps as high as $37/ozt. over the next 30 days.
Disclosure: Please understand that the above is just the opinion of a small fish in a large sea. None of the above is intended as investment advice, but merely an opinion of the potential of what might be. Simply put: The above is a matter of opinion and is not intended as investment advice. Information and analysis above are derived from sources and utilizing methods believed reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Comments within the text should not be construed as specific recommendations to buy or sell securities. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities. Do your own due diligence regarding personal investment decisions. In the interest of full disclosure, GOLDRUNNER is personally invested in the Precious Metals sector including various Precious Metals and other individual stocks and reserves the right to modify or eliminate any or all positions at any point in time.
Below are links to Goldrunner’s other recent – and still timely – articles:
- Goldrunner: Gold & Silver Showing Rare – Ultra Bullish – 3 Fan Line Formations November 3, 2020
- Charts of Gold and Silver are now showing a seldom seen phenomenon – a 3 fan-line formation. I have only seen a couple of these formations over the years, and they have always been explosive.
- Goldrunner’s Insights On Coming Gold/Silver Run Up, USD Collapse & Inflationary Depression August 22, 2020
- No one has a better grasp of the economic environment than *Goldrunner, a technical analyst who does fractal work. He sees the situation clearly given his extensive proprietary chart work that has put him head and shoulders above all the others in his field.
- Goldrunner: Gold Will Go Ballistic When the USD Goes “Zimbabwe” August 13, 2020
- Jim Sinclair has come out with a video and stated that with so many Dollars being printed to uphold the economy that Gold would eventually rise up to his top target of $87,000 an ounce.
- Goldrunner: “Buy Junior Explorers With LARGE Silver Reserves-in-the-Ground For Great Leverage” July 30, 2020
- The REAL leverage in the precious metals arena goes to those companies with very large amounts of silver reserves in the ground and that leaves the real price rise advantage to the owners of those ounces in the ground, i.e. the little explorers.
- Goldrunner: Avoid Massive Devaluation Coming In USD – Here’s How July 30, 2020
- The Fed has “gone Zimbabwe” but you can protect yourself by converting your Dollars to Gold and Silver! It’s that simple – really.
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