Buying Stocks

[Declan]

I often wondered why inflation seems to effect all countries. Why does one country simply stop printing money? Every country prints.

Two reasons, and maybe more.

1. It is a method of stealing value or wealth.

2. If a country does not print, its currency will more or less hold its value, while other currencies drop.

So relative to other currencies, its value will rise, making its exports more expensive and therefore less competative.

So to improve trade, countries try to lower the value of their currency.

 

[Declan]

The deflation is assets is continuing with the Dow down 450 points. Yikes.

 

[Declan]

With more than 3 hours to the open, I certainly am looking forward to today.

 

[Declan]

We are likely to see another one day wonder with stocks up big initially. It may not even last the day before it turns.

Silver is up 50c , the question is, when will it skyrocket to its true value.

 

[Declan]

As predicted, the Dow is up about 700 points, that was easy. The hard part is what happens now.

I suspect the big shots are using this as a chance to sell and bail out.

 

[Declan]

Bitcoin now below $29000 and looks in bad shape indeed

Make that $22500

 

[Declan]

We have seen a very big strengthening of the dollar as measured against the weaker euro, yen and pound. But it is still a currency in big trouble. The past few months has been very frustrating for metal enthusiasts though. I wonder if todays bounce is a sign that that trend now is about to reverse. Of most interest to me is the attempt of silver to get back up over 20 dollars. It is presently $19.98 on the December contract.
Note though that on Kitco, the physical is selling for $36 which is a crazy premium over spot for an american eagle

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online.kitco.com

So obviously there is huge buying and the paper markets are in danger of being shown that they are not real.

 

[Declan]

A promising day for silver bugs as it held well as the interest rates climbed to 3.5% on the 10 year.

In my humble opinion, silver needs the interest rate to rise sharply because silver is an industrial metal until the fear is introduced to make it a store of value. Then silver could go to $500 an ounce. Making each 100 ounce bar worth fifty grand. I bought many at $500.

 

[Declan]

Off to the races it seems with silver. About time too as I have waited long enough.

 

[Declan]

Hopefully today sees stocks and bonds go down while silver goes up. That would be opposite to the usual.

 

[Declan]

Gold price hits record highs in Japan, eyes on other currencies

www.kitco.com

Gold at an all time high in Japanese yen!!!!