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 America’s aging cars and trucks. (See the Tangibles Investing section.)
Precious Metals:
Gold and silver both dipped on Wednesday and Thursday (June 16-17, 2021) as traders responded to Fed Chairman Jerome Powell’s remarks. Gold’s 4% dip marks a good buying opportunity. In percentage terms, silver has dipped more than gold. But I expect that to correct in the next few days, bringing the ratio back under 67-to-1.
In September, 2018, when the silver-to-gold price ratio was 82-to-1, I wrote:
“Again, I recommend that folks seriously consider doing some ratio trading. The approach should be much like the oft-quoted “buy low, sell high” mantra. In the case of commodities ratios, we should say: ‘Ratio trade whenever ratios reach extremes.’ After all, reversion to the norm happens more often than not.”
And then in August, 2020, I wrote:
“The silver-to-gold ratio is now at 70.73-to-1. It will likely get back below 50-to-1 fairly soon.”
As I predicted, the silver-to-gold ratio is still slipping, but not as quickly as I anticipated. As of the day that I’m writing this, (June 17, 2021) gold is at $1,778.40 per ounce, and silver is at $27.71 per ounce. That makes the ratio 68.19-to-1. But, again, I expect to soon see the ratio back under 67-to-1.
I stand by my long-term prediction. I’ll still be buying silver rather than gold until the ratio is south of 40-to-1.
Economy & Finance:
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At Zero Hedge: Bank of America: Everyone Knows The Fed Will Stop Tapering As Soon As The S&P Drops 10%.
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New Zealand houseplant sells for $19,200 in online bidding war.
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And at Wolf Street: Third Publicly Traded Mall REIT Files for Bankruptcy in 8 Months: Washington Prime Group, the Simon Property Spinoff.
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And over at Credit Bubble Bulletin: Weekly Commentary: Historic Monetary Inflation: Q1 2021.
