Seadrive

Interest Rates and the Mineral Bubble: The Hidden Parameter

Gold, silver, oil, and commodities in general do not follow the yield curve, although they may seem to due to the fact that the fed normally keeps, or tries to keep, yields in more or less lock step with inflation, and inflation forecasts. This time the fed lowered rates in the face of higher inflation, along with printing billions of dollars of bailout money. Watch what happens to the "inflation curve", which commodities do follow. This poster is totally WRONG, and if his money is where his mouth is, he will have a lot less of it in short time. Miners hoarding their reserves in the ground? Name one. I can't find a single case of that. Shalom Hamou, good luck. You are really going to need it!