Miner Inflation Surge
Today US Producer Prices were up 2% - the most since 1974. The stock market shrugged off the news but miners surged (See chart). Gold and precious metals are seen as a hedge against inflation.
With record corporate profits we may see margins compress before the Producer Price rise shows up in CPI. Make no mistake, this is bad for stocks and it will show up in CPI eventually .
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Posted: December 19th, 2006 under Equities, General, gold.
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