Video News/In Focus with Jeremy Szafron

(Kitco News) - The market has it wrong about what rising bond yields mean for gold, and true inflation is running far hotter than the official number, according to Mario Innecco, a former bond-futures broker and host of the Maneco64 channel. Speaking with Kitco News after September CPI came in at 3.7%, Innecco said real inflation is “the increase in the supply of money and credit,” which he puts closer to 7%, and argued the CPI understates the cost of living through substitution and hedonic adjustments. He pushed back on the idea that higher yields are bearish for gold, noting that yields have climbed from near 0.6% in 2020 to above 5% while gold has risen from under $2,000 to above $4,000, because “we are in a bear market in bonds, and the last time there was a bear market in bonds, gold did very well.” Innecco said the Federal Reserve is “the purveyor of inflation” whose real job is managing public perception, and warned that anyone buying 10-year Treasuries at 5% thinking they are a bargain will be “fleeced” as yields head toward 6%, echoing the 1970s nickname for bonds: “certificates of confiscation.”