Stars are Aligned for Precious Metals

The divisiveness that has manifested itself in this country is unprecedented, the chaos in so many cities and states is unsettling, the continuous assaults on the current administration has prevented any real bipartisan progress, the Black Swan event known as the Pandemic has brought a recently strong economy to its knees, good job and unemployment numbers have reversed due to government lockdowns and we the people are suffering the consequences of the debasement and devaluation of our currency due to a massive Government Stimulus response to this crisis making the bailout of 2008 look like chicken feed. And that’s just what is going on in America. The entire world is experiencing similar problems and worse.

 Record prices in gold and silver is mainly about currency debasement. And not just the debasement of our US dollar but currencies all over the world. And now, as of today, Gold is north of $2000 and Silver is rapidly approaching $30 an ounce.

 What we are witnessing is a Perfect Storm scenario for precious metals. Currently we are heading into a contentious election where democrats will make a final push to take down Trump after all previous attempts have thus far failed. This is truly a time of turmoil and volatility. The combination of such events present us with the very environment that Gold and Silver will shine in!

 Record low interest rates, inflated stock prices, low to no yields on bonds, US and China relations as well as other nations are strained to say the least as uncertainty and unsettling unrest seems to be the norm. But things are far from normal and sentiment toward Gold and Silver has begun to change its course from little or no investor interest to accumulation as a form of wealth preservation.

 Even Pimco, the go to bond shop, is moving assets to gold as a Safe Haven hedge against what is transpiring in the markets today. Ironically, manipulations in the futures markets seems to be curtailed by the Big Banks notoriously known for short selling, especially on silver contracts.

 Higher prices on everything from stocks to all goods and services emphasises that inflationary conditions are under way. Just another wind at the backs of Silver and Gold.

 I know, most people find it difficult to wrap their heads around the notion that rising prices is actually the manifestation of the creation of more currency units (dollars) chasing all those goods and services, thus causing them to be more expensive. But that is the reality of such an inflated money supply.

 The US dollar is currently worth about 68 cents. So there’s a 32% loss in purchasing power and counting. Now with all the stimulus going on globally we could be in for a real currency crisis that may actually manifest itself into a stronger dollar as the US dollar may be viewed to be the least ugly of all it’s sister currencies.

 Of course that may also pressure precious metal prices to correct lower. But that will only be a temporary condition and should not cause anyone holding physical gold or silver to bail out of those real money positions. Any precious metals maneuvering should be done via stock market trading as prescribed by the coach.

 I believe anyone concerned about preserving their wealth would be wise to consider converting some of those devalued dollars into Gold and especially Silver which is not only a monetary metal but an industrial one as well.

 Most anyone interested can certainly accumulate more silver than gold due to the price disparity that still exists today.