Tags: america, consumption, dollar collapse, economic forecasts, economic predictions, gold, goldman sachs, housing crisis, oil, peter schiff, service economy, silver, unemployment
Tag Archives: silver
Why commodity prices are going to press even higher
26 MayThe greater access and liquidity penetrating the commodity markets have significantly contributed to the upward momentum and speculation chasing natural resources and commodities. It is important to note that this speculation is not without cause. The secular bull market in commodities is what has captured this speculation. Commodities and natural resources account for 61% of total net assets allocated to ETF’s. Trading commodities and natural resources were once restricted to specialists and large institutional money managers’. The removal of that barrier to entry has caused some seismic shifts and parabolic moves in a number of commodities. Changes in worldwide supply-demand dynamics, money printing and inflation, and weather induced factors have propelled prices even further. The greater access and liberal margin requirements in trading commodities is likely to induce a marked increase in volatility as has already been witnessed.
Commodities and natural resources are being driven higher by fundamentals. The challenge going forwards though is trying to capture upside without getting trapped in the merry-go-round.
Source: ICI 2011
Peter Schiff’s economic analogies
21 MayA collection of potent metaphors reflecting the current state of the US economy. Reminders are always beneficial for those who are aware. While I do not subscribe to all of Schiff’s views he’s core direction in terms of promoting gold, silver, oil and foreign currencies against the US dollar is something which most apt investors are attuned to.
Some of the quotes:
“They might as well nominate my six year to be treasury secretary. At least he would play with his toys instead of screwing up the economy.”
“We’ve just been going on a consumption binge, where we borrow money like drunken sailors from the rest of the world, and blow it!”
“The American did nothing all day but sun himself on the beach, he had a service economy!”
“The boom is the problem, the bust is the solution.”
“The government is like a kid experimenting with a chemistry set, and eventually they are going to blow us all up.”
Best quote:
“If a kid tells his teacher he has a straight A policy, but he skips class and he doesn’t study, he’s not going to get A’s just by saying he has a policy. The treasury can say they’ve got a strong dollar policy all they want but if we’ve got Ben Bernanke debasing the money it is going to go down.”
5 reasons to love the yellow shiny metal
11 MayMy mom used to tell me never to talk to strangers. One stranger told us all that inflation was controlled and below expectations, that consumers don’t want to buy gold, that he is not printing money and that his definition of the dollar is what it can buy. I don’t trust strangers, especially those who do not tell the truth.
Without me enduring more cheap analogies at this late hour, I will save you the discomfort so 5 Reasons Gold Will Continue to Shine courtesy of the TheStreet.com. The only caveat is that gold as an investment vehicle needs to be purchased on an incremental basis over time; it is not a momentum trade or for the very short term speculator. The key themes are below:
1. The declining dollar and outlook for rising U.S. inflation
2. Strong emerging market demand
3. Central banks from sellers to buyers
4. Not just a defensive asset
5. Supply has been constrained
The Cognitive Dissonance.com 