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Rio Silver CEO on Inflation: “Everybody’s Paying Attention Now”

“With the advent of COVID, on top of all this money printing, which has been going on in the background continuously, we’ve all just recently experienced in the past month or so runaway inflation,” Rio Silver CEO Chris Verrico told GoldSilverBitcoin founder Justin O’Connell on the GoldSilverBitcoin Show. He had just taken his truck to the gas station. All of the sudden seemingly, it cost $200 to fill the tank.

“Holy smokes!” he said.

We all have known that inflation could happen. “We forgot about it for a long time, because they were printing money, and there was no repercussion,” said Verrico, CEO of Rio Silver. “But, all of a sudden, boom. And we can see this inflation is really starting to bite into everybody’s pocket. So, everybody’s paying attention now.”

That’s the segue into a commodity supercycle, reasons Verrico, who posits gold and silver in particular are likely to become inflated last. We’ve been patient.

Many of us expected commodities like gold and silver to increase already. Bitcoin and the cannabis stocks, among other investments and events, seem to have gotten in our way. Now our patience is going to pay off. We’ve arrived. We’re going to see big time inflation in our business come. 

The cost of oil is going to cause an increase in the price of everything. With recent developments in Ukraine, who knows how high oil might go. The inflation just doesn’t seem to be restrained in any way.

The next question is, how long can the Fed and big banks keep the price of gold down. Over the years, they’ve created so much paper on top of the gold it just boggles the mind. And they have gotten away with it. I remember in 2000 when Morgan Stanley was short two years worth of gold world production. If that were to happen today, it would be an untenable situation for them. 

And it is very much in their interest to keep the lid on gold. As gold spiked up above $2000 recently, someone came in and hammered it down hard just like the good old days. The price movements when this happens are not natural market movements whatsoever. It’s just an attempt to demoralize gold and silver investors. But, they are going to lose their ammunition. Gold has been $2000 now. Silver usually follows. The horse could be out of the gate. 

Regardless of what’s to come, gold is currently a good price anyways. The mid-tier producers are making money at these levels. The price is likely to get better. It is going to pay off for those of us who paid attention and kept our eye on the ball. They won’t therefore be so reluctant to do mergers and acquisitions, because they are making money. It will be interesting to watch the mergers and acquisitions and this cycle plays out. We’re in the early days of a big old gold supercycle. Many people have yet to notice.

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