A really bad sign or a really good opportunity?

[StratBastard]

Sell price? Or ride this rocket until late Oct?

It rarely occurs to me to sell. Pretty much one time when my daughter was buying her first house, and I sold a pile of Krugerrands to raise a quick $80K.

My silver is an insurance policy and hedge. I never bought it hoping to make a profit. Now that I could (It's up $25K in the last 18 months since I bought it at $20.98), I don't need it. I do need the insurance policy though. And if it goes to $50, I'm DEFINITELY not selling. That means the bad stuff is here.

[StratBastard]

Just watched it drop by 70 cents in 40 minutes. Major players out there keep pulling it down, and it shoots right back up. The new physical demand (especially from India yikes!) is maybe overwhelming the paper silver market's ability to mitigate the price. From what I've been seeing, J.P. Morgan has been the culprit for years, and doing it for China as their client, who has a vested interest in keeping the price suppressed as they accumulate and produce it. India, however, is screwing that up big time. BRICS may not all be on the same page here.

[Inor]

It seems pretty self-evident the Federal Reserve Note is dying and the pace is increasing.

Last week, China dumped $53 billion of Treasury Bills, driving down the price of U.S. debt (and further increasing interest rates). They have been slowly selling U.S. debt for about year, but what makes this one unique is they seem to have increased the pace of their divestment. Probably, you saw this on the news. But what you may have missed is the day after China dumped over 5% of their T-Bills (May 14th), Belgium dumped another $20 billion worth of T-Bills.

Also, Japan (the largest foreign holder of U.S. government debt) is making noise that they do not want to sell their holdings, but at the same time the Yen is in free fall again. Late last week it briefly touched an exchange rate of 160:1. Historically, it has been bouncing between 110:1 and 120:1. So they may be forced to sell just to protect the Yen.

We could debate whether all these sales of U.S. debt are a hostile action or just happenstance, but it really does not matter. What does matter is the effect is the same - a weaker U.S. dollar, higher inflation and fewer options for the government to finance its stupid spending programs.

The take-away is: holding dollar denominated assets right now is a bad idea. Whether you favor PMs, crypto, hard assets, etc. is largely a personal choice. But the one things that seems clear right now, holding cash is a losing proposition in the immediate term.

[StratBastard]

Scammers are dialing it up on silver:

[StratBastard]

We could debate whether all these sales of U.S. debt are a hostile action or just happenstance, but it really does not matter. What does matter is the effect is the same - a weaker U.S. dollar, higher inflation and fewer options for the government to finance its stupid spending programs.

My take from what I've been reading is China is doing a double-whammy: dumping dollars to buy gold.

[StratBastard]

[Prepared One]

I am not a Wall Street whizz kid but when this economic house of cards fall it's going to be ugly.

[Michael_Js]

Trying to find her - she will be my new girlfriend!!

[StratBastard]

Silver shoots right back up to $32.31. Maybe they can't keep it down anymore, and will have to concede $30 as the new floor?

[Inor]

Silver shoots right back up to $32.31. Maybe they can't keep it down anymore, and will have to concede $30 as the new floor?

It could be. But personally, I think it is a little too soon to call a floor yet. If it can break and hold $32.50 for a few days or, even better, break and hold $33 for a few days... Then I think it would be safe to consider $30 a floor for the next couple months. But calling a floor for longer than a month or two is still pretty dangerous in my arrogant opinion. Since early March, it has been too much of a straight rocket ride up to get comfortable anywhere.

Remember, with silver particularly, it is primarily trading as an industrial metal right now, and the JP Morg is still heavily manipulating the market. What happens when/if the wheels totally come off the economy like we all think they will? (I have NO FREAKIN' CLUE! I'm just throwing the question out there.)