President Trump was in Detroit yesterday, touting the accomplishments of his second term.
Among the “affordability” measures he mentioned: Fannie Mae buying $200 billion in mortgage bonds to thaw out the housing market, a proposed 10% interest cap on individual credit cards for one year and the criminal probe against Jerome Powell, ostensibly because the Fed will not drop rates fast enough to meet Trump’s economic vision.
Similar market interventions were deployed during the Nixon, Ford and Carter administrations of the 1970s. The result: a stubborn battle to contain inflation.
Inflation (gold line) continues to closely track the inflation of the 1970s (blue line). (Source: FX)
Today’s chart of inflation reflects an eerily similar path to the 1970s. The last CPI reading (gold line) ticked back up 2.7%. If prices today continue to track those of the 1970s, the next wave of inflation could see prices rise higher and faster than during the 2021/2022 bout.
Yesterday, gold notched another new record high of $4647. Its slimmer, svelte cousin, silver, set a new historic high of $92. Both monetary metals are reflecting the market fear that once inflation gets started, it’s very difficult to contain.
~ Addison
P.S. Tomorrow in Grey Swan Live! we’ll be joined by Shad Marquitz and take a close look at the precious metals market in 2026.
In a brief discussion last week, Shad let slip his interest in one particular company that has labeled itself a gold and silver miner because of regulations that have restricted their sale of existing copper and antimony (used in drones and other defense tech).
Those restrictions are being lifted this month, along with other regulations that the Trump administration is trimming.
The details of this one company alone are telling for investors interested in capitalizing on the new retail interest in both precious metals and critical minerals. Shad’s an encyclopedia on the entire resource market. Every conversation yields a wealth of new market insights. Tomorrow’s Grey Swan Live! promises the same. Don’t miss it!
