Howdy folks,
Whelp, silver blew through $100 and closed at $103. Gold is sitting a couple bucks shy of $5,000. Works for me.
We could see some profit taking at these numbers, but I don't see that changing any of the fundamentals. Observant summed it up pretty well with,
"The eye-popping gains — eclipsing even gold’s historic rally — have come as a surge of speculation
by retail investors has collided with a five-year shortfall in silver supply.
At the same time unusually high silver stockpiles in the US and China have drained supplies of bullion
from vaults in London, where global prices are set.
'It is the perfect storm,' says Philip Diehl, former director of the US Mint.
'We have been in a long-term supply deficit, and it is just getting worse.'”
On the demand side, we have Sovereign wealth funds and Central banks accumulating with the Debasement trade and the Sell America issue. We have enormous industrial demand and lastly, we have the Uncertainty / CYA trade. It all adds up and collides with a Supply issue. Perfect storm. The GSR is at 51 but seems to want to go lower. It peaked at 120 but the historical average (er, 2000 years) is 15. Personally, I'm waiting for it get down around 30 and at that point will start trading silver for gold. Not dollars on your life. The dollar is trash. Just garbage and it's going to zero. It will take a long while because they have no choice but to lower short term rates and print more money. With a $38T debt, they have the choice between breaking promises or paying it back with cheaper dollars. The latter is more politically attractive. They'll continue to lie about inflation while we all experience the truth. And internationally, the Sell America trade is picking up and will force long term rates higher. This is the beginning of the end of fiat currencies world wide. A fifty year experiment gone awry as it has done, repeatedly, since the Romans. Currencies backed by gold and silver restrict politicians from promising more than they can deliver so they ditch gold and silver and go fiat so they can print more money. Every time it happens it always end the same way -with runaway/hyper inflation and political upheaval. That, my friends, it where we're headed. It will take a while and at my age, my grandkids will benefit, but so what.
Some reading material.
https://finance.yahoo.com/news/silver-price-continue-rise-200002982.htmlhttps://finance.yahoo.com/news/gold-tracks-best-week-since-2020-silver-breaches-100-in-stunning-rally-155625500.htmlA silver 1964 circulated quarter is now worth $18. Back in Rome, an ounce of gold would buy you a nice toga and sandals. In the roaring twenties, an ounce of gold would buy a nice complete suit of clothes. Today, at $5000, an ounce of gold will still buy you an nice suit of clothes. Do you see the pattern? Gold and silver are still worth the same as forever but the value of the currency has gone down the toilet. Since 1913, the dollar has lost about 98% of its purchasing power.
Oh, and please dear God, stop believing any data out of Washington. Cripes, the calculations used to be accurate but the formulae were designed to dink the numbers. All of them - CPI, GNP, Employment. Now, the calculations are bullshit and anyone who ever shops for anything knows it.
BTW, I did add some copper miners with COPP and COPJ.
Cover your asses people.
And so it goes,
peace,
rono
Comments
Hope you're staying warm. I honestly don't see them ever coming back down. It's not that the PMs are rising but that the fiat currencies are falling. Even Powell is printing money with low short term rates and TACO wants lower rates and more money. I'm playing the metals but am trying to get out of the dollar. The safe and easy play at this point is with the miners. Be careful with the bullion ETFs. By your spouse some bling . . . double winner.
Stay safe,
Rono
PM narratives, especially gold, seem to inflating faster than the online trump grift tracker.
how about the simplest possible explanation?
people all over the world have agreed, by action, that it is inevitable that trump destroys the purchasing price of the dollar, and companies that have sales only\mostly in dollars can not keep up without losing business.
as the dollar converges to value of the trumpcoin (measured in gold), the gop will declare it was all a plan to de-value debt they increased more than anytime in history.
and yes, it is ironic that this case of a simple story MAGA can understand will be one they dislike greatly.