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 the gold-to-silver ratio. (See the Precious Metals section.)
Precious Metals:
Have you noticed the shift in the silver-to-gold price ratio? I repeatedly urged my readers to ratio trade out of gold and into silver when the ratio was north of 95-to-1. With silver now up to $27.26 per Troy ounce, the silver-to-gold ratio is now down to 65.4-to-1. Congrats to those who made that trade. Remember: The ratio of gold-to-silver ratio in the Earth’s crust is more like 15-to-1. In the long run, we can anticipate reversion to that norm. And for the record: Even though a bounce in the price of gold is expected in the near future, I still consider a silver a “buy.” Inflation is coming, folks!
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For anyone in the Chartist camp: The Inflation Super-Cycle Is Here.
Economy & Finance:
Biden Administration Prepares Way For Banks To Refuse Service To Democrats’ Enemies. JWR’s Comments: I’m now anticipating news that the ghost of Lois Lerner has been resurrected–with targeted tax audits and arbitrary suspension of tax-exempt status for conservative charities and churches. Given Biden’s Obama-era credentials, that is very likely to happen.
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Airline passenger traffic fell last year to lowest number since 1984.
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The latest chart shows that the M1 Money Supply grew at a 74% rate increase, from last year. This sort of explosive growth is highly inflationary! Plan (and invest) accordingly. Your safety will be found in tangibles.
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Tom D. sent us this: If Pelosi and Biden Get Their $15 Minimum Wage, US Would Have Highest Minimum Wage in the World
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At Wolf Street: In-Your-Face Inflation: AutoNation Brags About Huge Jump in Per-Vehicle Gross Profit on Soaring Prices Despite Declining New-Vehicle Unit Sales
