The price action in the precious metals markets has been uneven for the past couple of months. It seems to be a market looking for a sense of direction. Just as with the base metals, there is of course a habitual tendency for the precious metals to follow the price of crude oil. But as previously mentioned, that linkage is weakening. Even though oil is off more than 25% from its highs of a few months ago (presently it is down in the low $50 range, per barrel), the metal prices have not followed. They’ve weakened a bit, but stayed in a fairly consistent range. With all of the international tensions–particularly regarding Iran–why hasn’t the the precious metals bull resumed his charge? I’m surprised that this hasn’t happened. Perhaps the sagging oil prices have made the metals traders cautious. All of this aside, I remain confident about gold and even more confident about silver as investments in the long term, since the inevitable long term direction of the dollar is downward. Whether in inflationary or deflationary times, the precious metals are a decent hedge. But it is in times of mass inflation that they really shine.With the Democrats now in control of congress, unbridled spending seems likely, and both higher taxes and and inflation will follow. I recommend that you continue to grow your physical silver holdings each time that there is a sharp price dip in the spot silver market. (For example the recent dip to down near $12 per ounce was a good time to buy. I hope that you took heed when I mentioned that dip )
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There are just 14 days left in the big “Container load sale” at Survival Enterprises. Several items have sold out. These are going fast! All of the storage food items are “first come – first served.” The prices are less than half of retail.
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Personal Savings in U.S. Drop to Lowest Rate Since 1933–the Depth of the Great Depression. Gee, decades of chronic inflation wouldn’t have anything to do with that, would it?