The time for gold and silver is now!

Ronald Stöferle is a guest on Wall Street Silver and explains why the fundamental changes of the last few years are the perfect scenario for silver and gold.

Inflation and the end of moderation

The 60s and especially the 70s were known for their high inflation. After that, the roughly 30-year period of great moderation began, during which inflation was very low. But this is now over. Inflation is currently at a decade high in many countries and should not return to the low levels seen before the Covid crisis anytime soon. Another point is that the definition of CPI keeps changing. Depending on the definition, inflation is actually much higher. It is also important to note that inflation is the only realistic path for policymakers out of the debt crisis.

 

Mines more profitable than ever

Compared to the S&P, the GDM index is extremely cheap. Mines are already very profitable at this price level and will only benefit more from a rising gold or silver price. Since the fundamental reasons for a rising gold price are very good, this will also have a positive effect on the mines. The numbers are already extremely good. If the gold price were to rise, it would be very unlikely that mining stocks would not follow suit.

 

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