Friday, January 25, 2008
Thursday, January 24, 2008
Well, looks like a lot more of the same... The dollar is losing it's power? Let's send everyone a check for $600! We created an un-realistic real estate bubble? Let's lower the rates again! How are we gonna pull off this magic trick? Did we find a huge unknown deposit of gold? Did our trade-deficit flip-flop overnight?
NOPE!!! We just decided the best way to deal with the inflationary problems is to print more money backed by NOTHING and pass it around. Dropping the prime interest rate by 75pts is the largest drop since the Reagan Administration. What happened back then?...Oh yeah, HUGE COMMODITY BULL MARKET with all-time highs (up to that point) in SILVER($50) and GOLD($800). Notice the 16:1 ratio? This is about the average ratio of silver to gold over all of recorded history. The ratio grows (20:1, 30:1, etc) in a commodity bear and starts shrinking as the bull takes over. Currently the ratio is about 55:1 !!! What does this mean? Well, lots of things jackass! For one, it means this bull market isn't even close to over. More importantly, it means that there is far more leverage in silver than there is in gold. As they both (as with all metals, oil, pork bellies, etc) go up in value during the bull run, SILVER WILL INCREASE AT A HIGHER PERCENTAGE than gold as it fights its way back to its historical ratio of around 15:1 (which would make silver $60/oz when gold is $900/oz)
Do yourself a favor.... if you are lucky enough to actually get a check for $600 from the gov't this June (as they predict), do yourself a favor and turn it into REAL MONEY. Turn it into silver!
NOPE!!! We just decided the best way to deal with the inflationary problems is to print more money backed by NOTHING and pass it around. Dropping the prime interest rate by 75pts is the largest drop since the Reagan Administration. What happened back then?...Oh yeah, HUGE COMMODITY BULL MARKET with all-time highs (up to that point) in SILVER($50) and GOLD($800). Notice the 16:1 ratio? This is about the average ratio of silver to gold over all of recorded history. The ratio grows (20:1, 30:1, etc) in a commodity bear and starts shrinking as the bull takes over. Currently the ratio is about 55:1 !!! What does this mean? Well, lots of things jackass! For one, it means this bull market isn't even close to over. More importantly, it means that there is far more leverage in silver than there is in gold. As they both (as with all metals, oil, pork bellies, etc) go up in value during the bull run, SILVER WILL INCREASE AT A HIGHER PERCENTAGE than gold as it fights its way back to its historical ratio of around 15:1 (which would make silver $60/oz when gold is $900/oz)
Do yourself a favor.... if you are lucky enough to actually get a check for $600 from the gov't this June (as they predict), do yourself a favor and turn it into REAL MONEY. Turn it into silver!
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