What's up YouTube Silver dragons here And today I want to talk about something Really weird that's going on in the Precious metal space so today silver and Gold prices have moved up however we Just got the inflation numbers for October and inflation is actually moving Down so silver and gold are supposed to Be an inflation hedge and you'd think That their price would go up when Inflation goes up and go down when Inflation goes down but in fact that's Not the case and I'll explain exactly Why that's happening in this video all Right let's do it Thank you so much for watching this Video I do sincerely appreciate it uh First off I want to say precious metals Prices are up today the stock market is Up today cryptos are up today basically Everything is up except the dollar is Down so this is not really a surprise Here and I don't think the midterms have Anything to do with the price move today I think the price move today is solely Because the inflation numbers have come Out for October but first let's look at What silver and gold are doing so as you Can see at the top gold is up uh it's Currently sitting at 17.55 it's up 44 on The day silver is at 21.76 it's up 54 cents at the moment uh So these numbers you know they're Bouncing around so who knows what
They're going to be by the time I post This video but uh the gold silver ratio Uh has moved lower today although it Still is above 80 but this is just Showing that silver is actually going up Faster than gold so okay let let's look At the inflation news U.S inflation Shows signs of easing perhaps giving fed Ammo to go slower so this is uh breaking News I mean this all just came out today The inflation rate Slows To 7.7 percent In October so the inflation was forecast To be at 7.9 percent for October but the Numbers are coming in it's actually Lower than expected now if you remember September inflation was 8.2 percent so We're lower than it was in September but We're also lower than expected and so The markets are reacting to this I mean The first thing that happened was the Dollar went down right and then Basically everything else went up so if You looked at your portfolio yesterday Maybe you invested in the stock market Or something like that I'm sure it was Probably down but today it's going to be Right back where it was uh you know from Two days ago so it went down and it went Back up today so it's kind of doing some Weird roller coaster gymnastics but uh It is interesting that gold and silver Prices are moving up when inflation is Moving down which is kind of Counterintuitive but why is this
Happening well the reason this is Happening is because inflation going Lower is actually going to just like This uh article says right here give the FED ammo to actually slow down on Raising rates let's look at the current Projections for the next rate hike okay So here we are looking at the CME Group Fed watch tool and these two blue bars You can see on your screen the one on The left is the percentage chance that We will only see a 50 basis point rate Hike it's at 80.6 percent chance uh the Bar on the right at 19.4 percent chance Is you know the likelihood that we would See a 75 basis point rate hike which is What we've seen from the last several Meanings so the next fomc meeting will Be on December 14th and if they only do The 50 basis point rate hike which again Is over 80 percent chance now this is Going to be extremely bullish for silver And gold and here's the thing the Markets are so forward looking that they Don't really care about the inflation Numbers it's kind of like whatever this Is what they care about they care about The FED starting to Pivot because once The FED does start to Pivot this is the Signal to all of the markets that it's Like all right now is the time to get Into precious metals you know a lot of People are probably going to be getting Into the stock market as well hoping
That that's going to Rally you know as The FED starts to essentially lower Rates I mean they're not really going to Be lowering rates yet but they've been Raising rates by 75 basis points every Meeting so it's like you know once they Do a 50 basis point rate hike this is Saying okay down the road we're gonna See rates come down and historically I Don't know if you know this but whenever We see the FED lower their rate by one Percent we actually see gold go up by 19 And silver which moves faster than gold Could you know really go up 20 30 40 Percent during that same period of time So I mean if the rates go up to let's Say four or five percent and then they Go back down to zero you know we could See gold double we could see silver Triple or quadruple in price and so Obviously you know a lot of eyes are on What the FED is going to do and this new Inflation number is just giving them the Ammo to perhaps start the pivot sooner So it is kind of crazy that we would see Inflation come down and gold and silver Go up I mean the normal thinking from You know just the average person would Be that because silver and gold are an Inflation hedge that whenever inflation Goes up we would see silver and gold Prices go up right I mean when we look At inflation we're really looking at the Cost of things going up so you know if
Silver and gold go up that is inflation Right Um but no it doesn't really work like That all of the time I mean obviously Sometimes you know it does we see Inflation go up gold and silver go up You know people are buying more gold and Silver they're worried about inflation And what have you and I think that has Been going on somewhat over the last few Years but really I mean the main story Is just that the dollar is so strong Right now and you know the dollar its Strength is compared to a basket of Other currencies the biggest one being The Euro so when the euro is doing Really bad then the dollar looks like It's doing really good regardless of Inflation and these these other things So you know it's kind of like a mirage You know you look at gold and silver Prices you're like wow why are they so Low right now well yeah they are low at The moment but it's like a spring that's So tightly compressed you know they're Ready to explore upload they're just Waiting for the FED to start lowering Rates you know which obviously the Dollar is going to get weaker and when The dollar does get weaker you know Silver is basically the opposite of the Dollar whatever the dollar does silver Is going to do the opposite so with the Dollar being so strong right now it's
You know compressing silver prices lower But once the dollar starts to get weaker You know we're probably going to see Silver prices shoot up and uh you know This is the general consensus uh Throughout the precious metals Community If this doesn't happen if we see uh the FED pivot and we see rates start to come Down and we don't see gold and silver Prices move up then something is broken You know there there's massive Manipulation going on you know I I don't Think that's going to be the case I Think it's very very low percentage Chance that it doesn't happen the way we Think it's going to happen I mean Obviously we don't know how high gold And silver prices could go you know We'll have to wait and see you know how All this plays out out but um I'm very Very confident that once the FED does Start to Pivot this is going to be Extremely bullish for silver and gold And with the new inflation numbers Coming out it definitely seems like it's More likely that they are going to start The pivot at the next meeting now I am Curious what your opinion is on all of This does it make sense that with Inflation coming down we would actually See precious metals go up or is it kind Of hard to wrap your brain around you Know this has actually happened a few Times over the last uh several years so
It's not the first time we've seen this Happen but it is kind of a weird anomaly But uh yeah feel free to leave your Comments Down Below in the comment Section I do want to say a massive thank You so much for watching my video and I Will see you all in my next one silver Dragons out silver dragons out
