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Scorpio

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#1
Buy Silver Now!

By Peter KrauthCommodities19 hours ago (Dec 23, 2020 09:56AM ET)


Peter Krauth

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In many ways, most of us can’t wait to put 2020 behind us and call it last year.
We’ve experienced a once-a-century global pandemic, infecting almost 80 million people. Lockdowns caused businesses to shutter and soaring unemployment, with massive economic consequences.
If you dig a little deeper, other costs include soaring debts and deficits worldwide. We’re approaching an unfathomable $280 trillion in global debt. Governments and central banks have facilitated tens of trillions in stimulus spending this year alone, and it’s far from over.
The U.S. is now passing its latest $900-billion stimulus bill, promising new stimulus checks, boosting unemployment, small business aid, and funds for schools and universities.
It’s little wonder that some asset classes have been riding this wave, not the least of which is silver. And looking ahead, the metal appears primed for another great year in 2021.
Debt, Deficits And Stimulus Boosting Silver
2020 was good to some investors. Stocks gained, with the S&P 500 ahead about 13%, while the NASDAQ Composite is up some 17%.
Precious metals investors fared even better. Gold has gained around 23%. Yet silver outshone all of these with an outstanding 44%. But as I’ll explain, I think gold’s cheaper cousin is set for another year of outsized gains.
I believe we’re entering a perfect storm for silver. Not only are central bank balance sheets exploding, but major economies are passing stimulus bills that, just a few years ago, would have been near-scandalous. What’s more, they’re doing so not just with relative ease, but outright encouragement.
The Fed’s balance sheet was $4.2 trillion at the start of the year. Today, it’s $7.3 trillion and growing. This year the U.S. Federal deficit will be triple that of 2019.


Federal Budget Deficits.

And yet, almost no one seems to care. Until … inflation.
I think inflation will be the dark horse of 2021. As vaccination rates climb and the visible effects of the pandemic subside, I expect our wild rates of money printing will start to take effect. Currencies, in particular the U.S. dollar, are likely to weaken.
That’s what gold and silver have been sensing, especially since massive stimulus programs and a Fed promise of near-zero rates until at least 2023 appeared.
Not only is silver demonstrating its ability to hedge against expected inflation, it’s also flexing its industrial-metal muscle. Fifty percent of silver is consumed in industry, plus 10% goes into solar technologies. Factor in exploding investment demand, and the metal’s outlook is robust.
What’s more, silver’s technical picture is providing a terrific setup.
Silver’s Bullish Technical Setup
The gold-silver ratio is a useful gauge to assess silver’s relative value against gold.
In March, the ratio spiked over 125, meaning it took an astounding 125 ounces of silver to buy one of gold. That’s an historic high which quickly reverted.


20-Year Gold-Silver Ratio Chart.

For most of the last 20 years, this ratio has bounced around between 50 and 70. Typically, when the ratio runs up above 80 and reverses, it tends to run down to 50 or even lower. Currently, the gold-silver ratio is near 73, and has been trending down. That’s what it does during precious metals bull markets. I think it has further to fall, even if gold moves higher, which is likely. As a result, I expect silver’s gains will easily outpace gold’s in 2021.
What’s more, the silver chart is confirming bullish price action.


Silver Futures.

Layer on top of that the seasonal trend for silver, and it becomes difficult to paint a more favorable outlook.


Silver Trends.

As you can see, silver tends to perform particularly well from December through February.
So here’s how I see it.
Ignore the daily noise in silver prices. One day traders buy the rumor, the next they sell the news. Instead, we need to focus on the bigger trend: silver has already more than doubled since March. It’s in a bull market.
Most of us are anxious to welcome 2021. And those who invest in silver and silver stocks are likely to find next year particularly rewarding.
It’s time to buy silver.


https://www.investing.com/analysis/buy-silver-now-200548807/
 

Uglytruth

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#2
Why does the price lag instead of lead or run parallel to the devaluation of the dollar & debt?
 

solarion

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Newly hypothecated currency is dumped on banksters by the fed so that they can feather their nests or plowed into debt and equity markets. Very little of that new currency is circulating through the economy. To see this in action look into FRED charts of M1, excess liquidity at depository institutions, and M2 velocity.
 
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#4
Why does the price lag instead of lead or run parallel to the devaluation of the dollar & debt?
That's a good question. Something similar occurred during our last inflationary spending spree. My assumption has always been that it takes time for it to saturate the system.

There IS something I've noticed that i may have missed last time.

There's an insane amount of money moving into collectables right now. Vintage Cards, figurines, you name it. It's been happening since about March/April. This leads me to believe There's a small percentage of john Q public that seem to be doing their best to find a store of value ahead of the curve.

Then again, this might mean nothing at ALL as an early indicator of inflationary prices to come...but something is fishy in Denmark.
 

Buck

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#5
There's an insane amount of money moving into collectables right now. Vintage Cards, figurines, you name it. It's been happening since about March/April. This leads me to believe There's a small percentage of john Q public that seem to be doing their best to find a store of value ahead of the curve.
i've seen 'it' too, an uptick in sales of 'collectibles' but, i've viewed it as a symptom of so many people sitting around at home, doing nothing instead of working...then they buy something

my sales are not across the collectible board, only certain areas have an uptick

idk if there's a way to prove one way or the other but, i'm considering your idea and i'm hoping it keeps upticking

:2 thumbs up:
 

Buck

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#7
just wait till London opens, they'll strangle the price again

"wait for the days when the price jumps or drops around a dollar or better, per day"

i once read that on a thread somewhere, 10 years ago, idr exactly, but, i think we're here
 

Irons

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#8
Ted is that you?


Eff silver buy Gold.


.
 

Tbonz

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#9
just wait till London opens, they'll strangle the price again

"wait for the days when the price jumps or drops around a dollar or better, per day"

i once read that on a thread somewhere, 10 years ago, idr exactly, but, i think we're here
buck up one day, next day it does south for 1/2 or more. been watching the same shit for the last decade. when real moves are being mad you can see the shit coming.
 

Buck

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buck up one day, next day it does south for 1/2 or more. been watching the same shit for the last decade. when real moves are being mad you can see the shit coming.
LOL, it didn't even make it to the London Open before losing half it's climb
 
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#11
Well you've gotten your wish.
It's up a dollar. =(
What will you do now that the world is your oyster?
Travel the world? Buy an RV?
Buy A tactical RV?

It's nice to see these dollar moves, but I wont be filled with excitement or much else until we hit $40 again.

PS: Just How much IS a military spec RV these days?
 

BigJim#1-8

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#14
Eff frn's, buy both.
 

smooth

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#15
And rifle and pistol primers out performed them all.