Does this mean the dollar is down, or os this more of a flight to safety?
> Does this mean the dollar is down, or os this more of a flight to safety?
both
Silver trades to $50 an ounce
11–20 of 86 posts
Re: Silver trades to $50 an ounce
#12Gold and silver hitting all time highs, stock market at insane levels. We have an asset bubble even though interest rates are high. Why is this?
Most of the market's upward movement is from a few stocks that are getting lots of juice from Federal policy.
Gold and silver are at record levels because of capital fleeing fiat due to lack of confidence in central banks -- Trump is actively attacking the US Fed trying to destroy Fed independence. Because the dollar is the world’s funding and invoicing currency, big moves by the Fed reset global financial conditions—pushing other central banks to react even when their domestic cycles don’t match.
Real estate has stalled, hiring has stalled, car buying has stalled (so much unsold inventory dealers can't afford floor plan!). Farmers are getting a $10-$15B bailout / hush money. It's just a matter of time until the correction occurs.
The spike in equities is also based on the assumption that the equities will weather the inflation and still end up as a store of value, but I think that's naive.
Take TSLA, currently "winning" in the special olympics micro-market of the tariff-protected US EV market, and losing internationally -- Musk just did a $1B buyback to juice the price. Take NVIDIA, finally going to get real competition from AMD but spiking after US "deals" juiced the price. Chinese GPUs are 12 months behind and rapidly closing the gap and will be half the price per perf/watt (TSLA investors pretend Chinese EVs don't exist, but not for long).
Imagine 30-120 days out once the national guard is occupying and helping ICE detain more and more of the workforce in the most economically productive 90% of the country!
The US economy is facing the greatest coordinated sabotage it has ever faced and as soon as the real numbers come in things are going to get very very ugly. The country seems to have forgotten that central planning does not work.
Re: Silver trades to $50 an ounce
#13Gold and silver hitting all time highs, stock market at insane levels. We have an asset bubble even though interest rates are high. Why is this?
In an inflationary economy like the one we have, "the market is at all time high" is not really a useful statement since it's the normal state of affairs.
Re: Silver trades to $50 an ounce
#14Gold and silver hitting all time highs, stock market at insane levels. We have an asset bubble even though interest rates are high. Why is this?
Tradfi is increasingly becoming a dog shit product. [ ] Advent of FATCA means it's hell for normal Americans to bank overseas. You're basically locking yourself into a tiny box by carrying tradfi products. Most lower middle class people will never notice because if you do things like "receve paycheck, go to grocery store" then you'll never see all the walls built around you. But people with money notice.
> Advent of FATCA means it's hell for normal Americans to bank overseas.
> But people with money notice.
skill issue.
you need more money.
Re: Silver trades to $50 an ounce
#1545 year cup and handle patterns playing out in gold and silver, both going much higher -- governments cannot borrow their way out of debt, current paper currencies going to zero value over time -- Dow down over 70% measured in gold over last 25 years -- etc. etc.
Re: Silver trades to $50 an ounce
#16Earlier quoted context omitted.
Tradfi is increasingly becoming a dog shit product. [ ] Advent of FATCA means it's hell for normal Americans to bank overseas. You're basically locking yourself into a tiny box by carrying tradfi products. Most lower middle class people will never notice because if you do things like "receve paycheck, go to grocery store" then you'll never see all the walls built around you. But people with money notice.
> Advent of FATCA means it's hell for normal Americans to bank overseas. > But people with money notice. skill issue. you need more money.
Yeah but even with more money your foreign bank is required to rat you out with no warrant, not appealing.
Re: Silver trades to $50 an ounce
#17Gold and silver hitting all time highs, stock market at insane levels. We have an asset bubble even though interest rates are high. Why is this?
Losing faith in the value of the dollar in the face of our crazy fiscal position?
The one thing that baffles me is energy prices. We haven't seen this oil/gold ratio since the pandemic, when demand for oil plummeted.
Re: Silver trades to $50 an ounce
#18Does this mean the dollar is down, or os this more of a flight to safety?
Dollar is down~11% ytd. Silver is up 76%
Re: Silver trades to $50 an ounce
#19Gold and silver hitting all time highs, stock market at insane levels. We have an asset bubble even though interest rates are high. Why is this?
Wsj had a great explainer on this today:
https://www.wsj.com/finance/investing/gold-screams-debasemen...
(Sorry, archive.ph not responding)
Re: Silver trades to $50 an ounce
#20Gold and silver hitting all time highs, stock market at insane levels. We have an asset bubble even though interest rates are high. Why is this?
Losing faith in the value of the dollar in the face of our crazy fiscal position? The one thing that baffles me is energy prices. We haven't seen this oil/gold ratio since the pandemic, when demand for oil plummeted.
EVs and renewables might account for reduced oil price.