Well, it came fast and now Silver sits around $60 per ounce. That is an all time high topping the long standing double top at $50. For those fans of TA ( technical analysis ) it broke out of a long multi-year cup and handle formation. Lobo Tiggre is bullish based upon fundamentals not technical and I might add me too. He has a longish view but remains confident that triple digit Silver is our future.
Demand and available supply for industry is tight and there are indications that the average Joe is now done selling to take long awaited profits and buying again. I sold a very small amount a isolated coins and even a little gold, about 10 grams but that is pocket change and not at all indicative of anything bearish. I continue to hold a position in Peter Schiff's gold fund EPGIX which is up over 65% ytd. This fund is managed by Adrian Day a real pro who knows mining company balance sheets and the managers who drive them as good as anyone. I am comfy remaining in this fund but exiting is a timing issue because it gets sold using end of trading day NAV. That has a lot of potential for slippage but it is something that can be minimized by watching for a good day with an up close so the NAV calculation is favorable.
If silver and gold keep rising it will be driven by money printing which for practical purposes is Deficit Spending getting monetized. US Bonds have been shifted to 1 year treasuries and shorter Notes and Money Markets and Banks are the end buyers, maybe pension funds too. So what about the 10 yr or 30 yr bonds? They appear to be on their own trajectory and in spite of any Fed rate cuts, will likely rise. That means mortgages will not drop much if at all. The real economy will be paying high or higher interest rates for the time being. The USD is maintaining its place as the cleanest shirt in the hamper but its domestic purchasing power continues to slide in sticky inflation. The real inflation is more likely around 6%+/- not the 3% promoted by pundits and fed watchers. Why the discrepancy? Come on, the fed statistics have been lies for a long time so why change now. In fact the gov shut down has kept any actual data absent and just now catching up…could it be harboring bad news?
I say hold your course and let the metals run. Miners will make money even if silver dropped back to $50 and gold dropped back to $3500…I want higher prices sure… but as a business, gold and silver mining looks to be profitable for the next several years.
Bit coin is suffering its inherent volatility and that's ok. The HODLERS will hodl and the speculators will get shaken out again. Who is selling? I think the OGs are enjoying a cash out…they are probably buying gold. lol
Best,
Donn Marier
DM-Your Own CFO