Tim Iacono – Thu 15 May, 2014

What Today’s Inflation Report Could Mean For Precious Metals

Tim’s latest free article is focusing on the consumer price index released today. These are some of the highlights he discusses:

  • Today’s inflation report saw consumer prices rising at the fastest pace since late 2012.
  • Gains were broad-based, indicating that this may continue as the U.S. economy improves.
  • Since there is a strong relationship between gold price and inflation, this could signal higher metal prices ahead.

Click here to read the full article.

Tim Iacono

  1. On May 15, 2014 at 11:18 am,
    ManAboutDallas says:

    This inflation is NOT portending an improving economy; it is signaling the same sort of “stagflation” that plagued the late 70’s, only this time it will be on a much greater scale because the distortions that are causing it are orders of magnitude larger.

  2. On May 15, 2014 at 11:55 am,
    CFS says:

    And if anyone still believes the CPI provides meaningful information, they need to re-evaluate their analysis.

    This index has been doctored to be meaning less and less over the years.

    Take some random items that you buy a lot of, and compare some average prices over a long enough period to take out random fluctuations and compare with the CPI, and you will then realize the uselessness of the CPI.

    e.g. Average gas price when Obama took office: $1.60; average gas price now $4.60……speaking from CA, my current location.
    etc. for rents/house prices. Food costs for same size packaging. etc.
    You will surprised at just how much the CPI underestimates real inflation for you.

  3. On May 15, 2014 at 12:26 pm,
    Derek says:

    The “PCE”, I believe is the acronym, I believe is what the Fed uses. Be interesting to know what it is, although just as the CPI it is probably meaningless. However, I do wonder if soon the Fed might accelerate the taper. I do think though that they have to control the debt service costs any way they can.