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Kevin972

Kevin972
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  • Silver (SLV) plunged to its lowest level in nearly 3 years overnight before a bounce brought it to its current price of $21.60, -3.3%. As with gold, silver ETP holdings have dropped to the lowest levels this year, and speculative short positions are on the rise, according to CFTC data. Gold (GLD) took out its April lows earlier - dropping as low as $1,338. A bounce has brought the metal back to $1,351, -1%[View news story]
    Excellent comments. As long as there are people willing to sell silver paper into the shorts, this will continue. I think if you were to data mine the word "deflation", see how many times it has been printed vs inflation over the last 6 months, the ratio would explain the moves in precious metals. Despite an increasing world population, requiring more people to compete for fewer resources, including food, energy, water, massive printing of money by central banks, the fix is in for now.

    I would agree, the next asset bubble is the market, where large hedge funds and other currency manipulators will shake the tree and catch the falling apples of the minions. Consider the elderly, having been ennticed\forced to put there money into the market due to pressure from low interest rates, will get whiplashed again from market gesticulations.
    May 20 11:23 AM | Likes Like |Link to Comment
  • Don’t Worry About a Return to ‘70s Stagflation [View article]
    While inflation is problematic here, it is much greater for China and India. The combination of both rising costs for manufacturing and rising transportation costs, along with ongoing global currency adjustments will, eventually bring manufacturing jobs back on shore. This may take 5-10 years, but it will happen. Cheap oil made the exporting of goods and services possible. Expensive oil favors more local solutions and more jobs in the long run. Currently there is a yet favorable envioronment that allows for this. I don't believe this will hold up in the long run. I don't believe we are in for the large oscillations that both China and India may have to endure, just slower growth. Overall, higher oil prices encourage local solutions and capabilities, which is just what the "creative" side of americans are capable of....even if we don't insist on 4 years of math, chemistry and physics at the high school level.
    Jun 24 10:37 AM | Likes Like |Link to Comment
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