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Argentina tries freezing prices to break 30 percent annual inflation spiral

Argentina has announced that they are freezing prices for 2 months to try to “break the back of inflation.”  Oh yeah, this will work!  This will work just like it always has in the past every single time anyone tried it.  It reminds me of “WIN” back in the 70’s, remember “whip inflation now?”  That was a good one!  What will happen is that within a week to 10 days there will no longer be anything left on the shelves to buy.  People will hoard.  They will SPEND what “cash” they have NOW on “stuff.”  ANY “stuff.”

You see, people are not stupid.  They may be gullible and easily “lead” around by the nose but they are not stupid.  They know that a can of peas will surely “spend” for some toilet paper later or can be eaten (if you like canned peas… yuck).  They don’t know whether or not their “cash” will spend (or how much cash it will take) tomorrow.  So basically by “government edict” the shelves in Argentina will shortly be bare of goods.

This is pretty much the same concept in any market.  If prices are held artificially high, the “product” will not sell and conversely if prices are held too low the product will be “over” purchased until shortages become evident.  This is exactly what has been happening in the precious metals markets for years now and recently coming to a crescendo in the physical market.  It is this concept that will ultimately be the reason that the silver market blows up and none will be for sale for “cash” proceeds, only “stuff.”

Sprott Precious Metals Round Table – Get The Real Story

Next Tuesday, Feb,12th at 2:00PM eastern time, Eric Sprott and John Embry will be holding a webcast regarding precious metals.  I urge everyone to watch this as Mr. Sprott and Embry are two of the greatest financial minds on the planet and always interesting to listen to.  Not only do they see the big picture as clear as anyone, they have their fingers on the pulse of the daily metals markets like no one else.  I would urge you to watch this ESPECIALLY if the last couple of months have left you feeling nervous, they will put perspective to where we really are!  The following is a description and the link to sign up to watch:

The round-table discussion will include Eric Sprott, Rick Rule and John Embry, widely-recognized experts in precious metals investing. They will cover gold, silver, platinum and palladium, and discuss the advantages of the Sprott Physical Bullion Trusts compared to traditional bullion ETFs:

  • Why are non G7 central banks buying gold? Do Western central banks have any left?
  • Why are investors buying equal dollar amounts of silver to gold? What does it mean for the price of silver?
  • Is the growing supply deficit of platinum and palladium going to push their prices higher?

Date and Time: Tuesday February 12 at 2 pm ET

Registration is required.

Register Now!