Silver is defending the $14 price level so far tonight.
Been hovering right above $14, at $14.05 now.
In addition to all commodities getting smacked on price such as oil, silver is at risk of an interest rate increase. Yeah, this is the same thing as a strong dollar, but we have that already with basically a zero interest rate policy, so raising them should take the dollar into the stratosphere.
Now will one measly 25 basis point (0.25%) rate hike do anything really, not much. It will send the signal for things to come perhaps, or maybe even things that have now passed, who knows. If you see three or 4 of those so we get a 100 basis point (1%) rate hike, and I think the dollar will go nuts and gold and silver will push to lows we haven't seen in quite some time. Probably single digits in silver and certainly sub $1000 on gold. Heck, gold could get there any day. Gold may drop sub $750, maybe even sub $500.
Personally I don't think we will ever get out four 25 basis point increases before having to reverse course, but what do I know. I know I will be buying silver like a mad man in the single digits, though you could say that about someone that bought it at $25 now too.
Sunday, November 29, 2015
Sunday Night
Metals markets are opening back up.
Silver at an even $14.00. Seems like an important number.
Not many people have seen the opportunity to buy that low. Not in some time at least.
I honestly expect both gold and silver to continue to break down.
Right now the US Dollar is strong, which hurts metals.
Also gold is expensive at the moment compared to oil. I don't see oil catching up any soon so down further for the monetary metals it is.
At least my Buckeyes beat Michigan this weekend in football.
Silver at an even $14.00. Seems like an important number.
Not many people have seen the opportunity to buy that low. Not in some time at least.
I honestly expect both gold and silver to continue to break down.
Right now the US Dollar is strong, which hurts metals.
Also gold is expensive at the moment compared to oil. I don't see oil catching up any soon so down further for the monetary metals it is.
At least my Buckeyes beat Michigan this weekend in football.
Friday, November 27, 2015
Friday Comedy
I have really enjoyed this video and wanted to share.
I am in tears watching. Best part for me is that I can't tell if it is a real translation or if it is a fake. Just like I can't tell if the tears are from laughter or sadness. That is how you know it is a great video. The Egyptian news reaction to President Obama is just the best.
Thanksgiving and King Dollar
Today, well yesterday about 15 minutes ago, was Thanksgiving here in America.
One of my two favorite holidays. Independence Day aka the 4th of July being my other favorite holidays.
Why?
Both are American holidays.
Neither require me to get a gift for people.
Both involve feasts of food.
Independence day is always great weather.
Thanksgiving is always right around rivalry week in college football.
Today I am thankful for King Dollar.
While King Dollar is going to die eventually, he is as strong as ever lately and looking to get stronger.
As a result, I haven't been buying many coins or gold or silver here in the US. My dollar buys more now in Europe and that is where I have been spending my coin money. I need to look into Canadian coins too. The Canadian Dollar has been crushed lately too.
While the US Dollar price of gold and silver look poor, they have held up well in regards to other currencies and oil. It really isn't precious metals being down as much as it is the dollar is up. Of course the opposite will be true when the metals do rise eventually, it will be more the dollar tanking likely than the metals rising.
Either way, my ounces still all weigh the same. That is the point of wealth, it just sits there. Wealth is nothing more than deferred consumption, probably why it is so rare anymore. If I wanted it to multiply, I would put the money to work in productive assets like small businesses or rentals or Wall Street.
The secret isn't in making as much as possible, though it certainly helps. The secret is in needing as little as possible from the world to thrive and be happy. Minimalism is the trend going forward for most of my fellow Americans whether we like it or not. Embrace it now while it is still your choice.
One of my two favorite holidays. Independence Day aka the 4th of July being my other favorite holidays.
Why?
Both are American holidays.
Neither require me to get a gift for people.
Both involve feasts of food.
Independence day is always great weather.
Thanksgiving is always right around rivalry week in college football.
Today I am thankful for King Dollar.
While King Dollar is going to die eventually, he is as strong as ever lately and looking to get stronger.
As a result, I haven't been buying many coins or gold or silver here in the US. My dollar buys more now in Europe and that is where I have been spending my coin money. I need to look into Canadian coins too. The Canadian Dollar has been crushed lately too.
While the US Dollar price of gold and silver look poor, they have held up well in regards to other currencies and oil. It really isn't precious metals being down as much as it is the dollar is up. Of course the opposite will be true when the metals do rise eventually, it will be more the dollar tanking likely than the metals rising.
Either way, my ounces still all weigh the same. That is the point of wealth, it just sits there. Wealth is nothing more than deferred consumption, probably why it is so rare anymore. If I wanted it to multiply, I would put the money to work in productive assets like small businesses or rentals or Wall Street.
The secret isn't in making as much as possible, though it certainly helps. The secret is in needing as little as possible from the world to thrive and be happy. Minimalism is the trend going forward for most of my fellow Americans whether we like it or not. Embrace it now while it is still your choice.
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