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, we look at surging inflation figures. (See the Inflation Watch section.)
Precious Metals:
Silver jumped 4.4% yesterday, to $22.59 per Troy ounce. Gold was up 1.86% to $1807.60 per Troy ounce. This makes the silver-to-gold price ratio now back to near 80-to-1. So this is a good time to ratio trade out of gold into silver. I expect silver to continue to gain versus gold, with a ratio closer to 50-to-1 by the end of 2022. Oh, and consider hedging into platinum a bit, too. At just $934 per ounce, platinum is a screaming buy, given the long-term gold-to-platinum price ratio. I do not expect inflation to abate in the U.S. anytime soon, and that will be positive for all of the precious metals. Without Federal spending restraint, America cannot “Whip Inflation Now” — as Gerald Ford urged us, back in the 1970s. Do you remember those absurd “WIN” buttons? But we can protect ourselves from some of its effects. Hedge, hedge, hedge! – JWR
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For those who follow chartists, there is this from Gary Tanashian: Gold, Silver, Gold/Silver Ratio And HUI Index.
Economy & Finance:
Stocks fall, Nasdaq drops nearly 2.5% as tech sector stumbles.
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Biden Mocked For Bragging U.S. Pays Bills On Time By Increasing Debt: ‘An Oxymoron Without The Oxy’
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At Zero Hedge: Evergrande’s Surprisingly Quiet Collapse.
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Mega cap leaders sell stock at historic levels amid high valuations, tax changes – WSJ. JWR’s Comments: Watch the Smart Money. It looks like they are selling at the top. So… Sell any stocks or mutual funds that you own that are not recession-proof or depression-proof!!
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Hedge funds hammered after Omicron variant spooks markets.
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