Silver Dips Below $20?

I've heard the same doom and gloom since 2008, Fatman. I believed it back then. Now, I think back and realize I was being extraordinarily naive. The US and world economy is both stronger and far more resilient than I ever imagined. And no one knows how to circle the wagons like the billionaires who run this planet. They believe they have far more to lose by standing back and watching the fabric of society unravel around them than your average wage slave. I won't be so quick to bet against them again.

Fatman love that icon by the way, lol. I invision you in that paper every morn lol....

Much of what you say I totally agreed with an felt same way say three years ago....

I agree with 21 as I often do on the digi thought. USA debt or no debt is still the BIG DAWG and nobody is gonna bite the hand the feeds-ESP China they ain't stupid. You know the Feds are masters of bouncing debt like the guy who transfer cc debt from one card to the next. Difference is the Feds are always 3 steps ahead of the rest of us wetter we like it or not. Smart people lead the way for victory in all the world wars. That same fiber may be dormant in most today-but by God that never give up American heart will always be there....

Like 21 and I an others long sense debated an covered-if push comes to shove we will erase the world books and start from scratch....

There is a reason when the kaka hits the fan- everyone looks out way and shrugs their shoulders and ask what's next Uncle Sam?

congrats!
nice purchase!

I haven't been adding anything with low premium for almost half a year ... only numis, or something for resale.

I tend to agree with Fatman here... regardless of how the money is being generated - digital or greenbacks. The fed has been artificially supporting the economy via cash to buy the governments debt. The stock market has loved it because it has allowed them to ignore that sector of the market and play the how high can we go...

This hasn't really translated to an actual growth in the economy. Jobs aren't growing quickly, and many of the new jobs are paying less today than they have in the past. Many companies have shifted to overtime, instead of new hires. Many others, have shifted to fewer hours and more employees to skirt the Obamacare issues. Obamacare itself is impacting current hiring policies and slowing growth as companies try to figure out what the ramifications are to the bottomline in 2014.

Interest rates are climbing in spite of the FED not because of it. There are many speculating the FED is close to not being able to do much to control the economy in the very near future - since they have played out a large part of their hand as well. Lets face it - these are the same people who were blindsided by the subprime disaster and the only people left holding the bag after that were the US tax payers.

Theres a whole lot not to like about the economy. If youre a recent college graduate better start looking at the military if you want a job. I could write a dissertation on the disaster that will be known as Obamacare, but on the bright side even a lot of Dems are advocating for making changes too it now. They werent caught as off guard as we probably assume for the housing. That was a political mess that had real consequences and you can pretty much assume it was allowed to fall harder as a form of politics to try and stick it to Bush.

However were working off of some misnomers when it comes to metal prices. For metal prices to fall we dont need a full recovery, we dont even need significant improvement, all we need if for the massive free fall of the economy to stop.

We can all agree that the huge money investors have the greatest impact on the price and their actions get the majority of the public to follow with how the price moves. They run to the metals when were in a free fall not knowing how bad things will get to protect their money and make some at the same time as the metals prosper in that situation. Once the free fall has stopped though the metals go flat and bleed off and theres no more upside to them or very limited upside.

The key indicator is just if everything is stable, if its stable they can be comfortable putting their money to work in areas that will make them a lot more money. Ideally you want things to be getting better which is why the prices came down faster in the 80s. While were basically improving in-spite of our efforts instead of because of them thats why the price fall is a lot more drawn out this time.




The US is different in a lot of ways. As the US goes the world goes currently. If we go down so does every major global economy. The middle east loses a lot of wealth, china loses its biggest buyer, Europe would be hit hard as well ect. No matter how much some of these places may dislike what we stand for they know our existence is beneficial to them which has far more weight than any ideological differences to those in power.

We often compare our situation to Romes which is in a lot of ways pretty accurate. But Rome didnt fall in a day or a year or a decade. It took a couple hundred years and over a century even if you picked some major events at the end as the start of the time frame. We wont fall in a day either. Losing a massive world war is one of the few ways we could fall quickly.

Money has no hard set rules like physics. Everything with money is only because humans say so and the only reason why something matters with it is because we say so. Think of it this way, say you have a friend you lend money to from time to time but he never pays you back. If all he does is take money youll probably stop helping him out. But if he helps you out in a lot of other ways you wont care as much especially if the money doesn't mean a lot to you.

Using that analogy for the US and the world we do borrow money from people but as of now they really dont care they dont get paid back because we help all the countries that lend to us. Were the UN military force they get to use, China more than likely is itching to lend us more to gain influence over us, the bottom line is the money comes with strings and is more of an investment on their part in their own future than a blank check loan you would give to stranger.

Its certainly not ideal but there is no chance anyone is dumb enough to call in the debt which could result in their own demise as well. We could also just print it off to pay it off, again not ideal but anything is better than collapse. Were in a very unique position where we can kind of do what we want financially and it wont break us like those other nations who have little to no influence/impact on the rest of the world.

This isn't ideal and doesn't mean we should be spending like we are nor will this situation last forever, but it will last for our lifetimes. It will take a awhile for the rest of the world to start moving things and making adjustments to shelter themselves before they could ever be in a position to let us break.

We absolutely should be more responsible to ensure that we have this position for centuries to come, but if were not we wont fall in a day. As far as metal prices that position also means that some of those indicators that matter elsewhere arent that important for what the metals will do here for now.

Even if the fed stops propping up the stock market while the market as a whole will fall, that doesn't mean everything in the market will. There are still some giant powerhouse companies that can and will do well and they will benefit from more money getting moved into them while the weaker companies watch their prices fall. But like metals the market is built a lot on speculation and fear which is the reaction we say. If they stop boosting it and people see the market doesn't crash the money that was pulled out will trickle back in when people see its not the end of the market just like we saw when people realized the US wasnt going to collapse from the last crisis.

and anyone who is shorting silver is only helping to suppress the price, especially when it is a naked short, like so many of them are,i personally hope silver goes straight up from here, and all the shorts lose their shirts..my opinion only..

to compare Japan and the US is dead wrong.

the economic strength of the US is enough to state things that things are coming along fine.

I could ask the same of you, give me facts, not conspiracies, my dear friend, that the Fed is buying all the bonds and behind the bond sales. Show me hard evidence.

yup, you've made a statement, I asked for facts ... now you want me to prove that you were wrong?
does it mean that you are so sure about recovery that you are not able to prove yourself? ))

ok
here's my turn
Dow 30 companies (those counted that has been existed since 1992) , total sales quarter over quarter
blue line q1/q1 % for quarter
red line q1/q1 % for 12 month