Here are the latest news items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. Most of these items are from the “tangibles heavy” contrarian perspective of SurvivalBlog’s Founder and Senior Editor, JWR. Today, I describe ratio trading, in your tangibles portfolio. (See the Tangibles Investing section.)
Precious Metals:
There should be a bounce-back in precious metals, from the drops on the mornings of Thursday and Friday, last week. I try not to let short-term market volatility bother me. I’m more of a “Long Haul” metals investor.
Once there is a public realization that the claimed “transitory” price inflation of the U.S. Dollar will actually become chronic inflation, I expect to see a substantial rally for precious metals and many durable base metal commodities. I anticipate that chromium, copper, and nickel will all increase, in Dollar terms. Those “in Dollar terms” rallies will most likely begin in October or November of 2021. Time will tell.
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50 Years Since The Closure Of The “Gold Window” (Part 1)
Economy & Finance:
Who Pays For Dems’ Plan To Spend Trillions To ‘Stimulate’ Economy? Hint: Not The Rich.
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H.L. sent us this: Here’s how coin circulation issues are affecting some CT retailers. JWR’s Comment: Presumably, many of these same effects are still being felt nationwide.
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Jobless claims rise to 332,000 as economy tries to regain momentum.
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Treasury Department Seeks to Track Financial Transactions of Personal Bank Accounts Over $600.
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At Wolf Street: Business Travel, Conventions, Office Occupancy Stuck in Collapse: Been so Long, People Forgot What Old Normal Was.
Commodities:
H.L. sent us this:
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OilPrice News reports: China Back To Stockpiling Crude As Refinery Runs Hit 15-Month Low.
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The Battle For Control Of East Mediterranean Energy.
Inflation Watch:
Media Attempt to Downplay Alarming New Inflation Report.
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Charles Hugh Smith: The U.S. Economy In a Nutshell: When Critical Parts Are On “Indefinite Back Order,” the Machine Grinds to a Halt.
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Food, energy prices seen pushing September inflation past 5 percent.
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Building Materials Prices: Large Increases Year-To-Date.
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Economist Reveals What Happens When There’s Too Much Money Chasing Not Enough Stuff.
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Meanwhile, in the UK: Inflation soars to 3.2% in new record after rise in food prices. “The UK inflation rate rose from 2% to 3.2% in the year to August – the biggest increase since records began in 1997.”
Forex & Cryptos:
Dollar holds near three-week high after U.S. data boost.
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AUD/USD Outlook Mired by Deviating Paths Between RBA & FOMC.
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In Pakistan: Injection or not: the rupee slide explained. A quote:
“The rupee, which has been termed the worst-performing currency in Asia, seems to have opened the field for the bullish US dollar to move forward unchecked and erode the remaining value of the local currency, maintaining downturn since it touched a 22-month high of Rs152.27 in May 2021, losing a cumulative Rs17.36 in the past four months.”
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Ray Dalio says if bitcoin is really successful, regulators will ‘kill it’.
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El Salvador president says half a million using new bitcoin wallet.
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South Korean lawmaker: Delaying tax laws on crypto is ‘inevitable’.
Tangibles Investing:
Heeding my own Tangibles Investing Rationale, I’ve recently expanded my own portfolio, and did some ratio trading. For example, I’ve increased the number of pre-1899 guns in my personal collection. I also recently traded some silver for some reloadable 7.62x39mm ammo. That was just after the announcement of Biden’s ban on gun and ammo imports from Russia. I also ratio-traded some physical silver for some physical platinum — taking advantage of a day where I saw a jump in spot silver and a simultaneous drop in spot platinum.
Remember:
- Watch markets vigilantly.
- Stay flexible. When you see a distinct opportunity, pounce on it.
- Never fall in love with any particular investment.
- A diverse portfolio is a strong portfolio. (“Diversity” in the social sciences is a cruel joke, but diversity in investing is truly admirable.)
- Keep your eye on long-term trends, but don’t ignore short-term market forces.
- Be ready to ratio trade when the opportunity arises, if that trade matches your long-term goals.
- With tangibles don’t trade hard goods for soft goods. Trading hard for harder is best!
- In the long term, tangibles will trump “conceptuals”.
Provisos:
SurvivalBlog and its Editors are not paid investment counselors or advisers. Please see our Provisos page for our detailed disclaimers.
News Tips:
Please send your economics and investing news tips to JWR. (Either via e-mail or via our Contact form.) These are often especially relevant because they come from folks who closely watch specific markets. If you spot any news that would be of interest to SurvivalBlog readers, then please send it in. News items from local news outlets that are missed by the news wire services are especially appreciated. And it need not be only about commodities and precious metals. Thanks!