Tuesday, July 19, 2011

I sure missed the boat!

Silver and gold started a run yesterday and I was reliably informed that I had missed the boat and they were going to the sky.

No, guys.  That is an EMOTIONAL conviction, not a logical or reasonable one.  When you are talking about $100 silver, you are talking about an ounce of silver someone is willing to pay ONE HUNDRED US GREENBACK DOLLARS for.

You are not talking about some imaginary valuation for silver that has nothing to do with US fiat currency.  You are talking about US fiat currency.  You may think you are living 6,000 years ago, or in 1800, or in 1933 or even in 1964 or 1977 but that merely means you aren't any smarter that an Afghan herdsman who still waits for Muhammad every day.   

Muhammad isn't coming with 72 virgins and silver isn't going to $100 an ounce.  If the US continues into a hard depression, silver will decrease against the dollar at some point.  If the US recovers, (now an impossibility), silver will decrease against the dollar immediately. 

PRECIOUS METAL IS NOT VALUED AGAINST ITSELF ANYMORE.  IT IS VALUED AGAINST FIAT CURRENCIES.

No comments:

Post a Comment

Say what you think. But think first.