John Williams: $8,890 Gold, $517 Silver & Hyperinflation Update

Saturday, February 18, 2012
By Paul Martin
February 17, 2012

John Williams, of Shadowstats, discusses some extraordinary prices for gold and silver as well as giving an update on his hyperinflation watch. Williams also says that there is no recovery in the economy and inflation is picking up steam. Here is what Williams had to say about the situation: “Hyperinflation Watch: The upside pressure on oil prices, at the moment, largely is from escalating political tensions in the Middle East, not from significant new weakness in the U.S. dollar. Risk remains high, though, of a sharp sell-off in the U.S. dollar and dumping of dollar-denominated paper assets, particularly as the euro area crises come to head and the damages are absorbed, in due course, by the global financial system.”

John Williams continues:

“There has been no change in the underlying fundamentals. There is nothing that would support a sustainable turnaround in retail sales, personal consumption or in general economic activity. There is no recovery, just general bottom-bouncing. Accordingly, real retail sales levels in the months ahead should become increasingly negative.”

Inflation update: “The SGS-Alternate Consumer Inflation Measure, which reverses gimmicked changes to official CPI reporting methodologies back to 1980, eased to about 10.5% (10.48% for those using the extra digit) in January 2012, from about 10.6% in December 2011.”

Gold and Silver: “Despite the September 5, 2011 historic-high gold price of $1,895.00 per troy ounce, and despite the multi-decade-high silver price of $48.70 per troy ounce, gold and silver prices have yet to re-hit their 1980 historic levels, adjusted for inflation. The earlier all-time high of $850.00 of January 21, 1980 would be $2,476 per troy ounce, based on January 2012 CPI-U-adjusted dollars, $8,890 per troy ounce based on SGS-Alternate-CPI-adjusted dollars.

The Rest…HERE

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