For those who own physical silver and/or silver stocks, the following article makes some notable points about what is going on in the metals markets:
http://blog.milesfranklin.com/its-a-trap
The U.S. continues to alienate the rest of the world with its arrogance. The bully can only intimidate the rest of the neighborhood for so long before everyone else has finally had enough. The manipulators of the metal have played on the emotions of the investors, believing they could minimize the demand for silver as well as gold. Those who believe history must be considered as a strong indicator of the ultimate direction of these metals have taken these times to add to their positions. Patience rewards those who are not swayed by the tactics of the manipulators.
Inflation in food prices has definitely shown up in our local economy. Prices are up by at least 10% this year. Has your paycheck or social security check increased by this amount? Probably not. The middle class is shrinking rapidly in the U.S. This is where economic growth has come from in the past. As baby boomers respond to higher prices, you can be assured that they will begin to cut out any extravagance of the past. It may take a few quarters to show up in the GDP, but expect to see retail spending weaken.
$45,000 for a new Ford pickup? You’ve got to be kidding. $9 for a “pick two” at the local Panera Bread? Outrageous. $4+ for a gallon of milk? I am sounding like my parents now. Our paper money continues to depreciate in value. Physical assets are the only true stores of value in the end. Some of them are even suspect.
Russia’s accumulation of gold:
China has a similar graph. They see the change coming. The bully will be overcome and the rest of the neighborhood will go about its business.