With the US10Y at .67 this is a situation where effectiley what we're looking at, is a real yield that is in fact, negative. During this entire period, gold has stayed higher. If gold doesn't have a YTM or coupon payment, investors will only put money into this when traditional securities aren't offering risk-adjusted returns. With the Fed saying yesterday that interest rates could stay this way until 2022, the Fed will continue QE for a long period of time. Going forward, when inflation rises, the Fed won't be raising rates. Inflation will be rising faster than U.S. yields. An environment that is defined--rerguardless of the upside to inflation-- we're likely to sustain a consistent period of growth, considering where interest rates are.
This for me is bullish both Gold AND silver. The sweet spot is where the Fed doesn't recover, yet the Fed doesn't need to juice the economy to much. This can be compared to the 08-09 recovery. Silver prices (Mar 09) was a week when U.S. bottoms, silver closed at almost 20/oz. Silver prices explode traditionally when the Fed is pumping the economy. People sell gold to raise capital, during the peak of the crises this year. Gold prices have since stabilized and returned to fresh yearly highs. This is an extremely bullish environment for precious metals.
We know that gold and silver back every currency just about in the world and ask as sort of a heart if you envision the economy has a body. We could also probably agree that oil is the blood that circulates through the body. But what about the skeleton? That is where Palladium in platinum take center stage. Now, why do I say that? After every world event, something drastically changes, and I always use World War I and World War II as an example. In World War I, the world saw the very first aero- warfare Germany dominated the skies in the ground in the water, and they were the first, besides Italy, to use Planes on a large scale in combat. With BMW being able to build the highest-flying and the fastest flying planes in the world, Germany was able to rule the sky. Now with World War II.
ARegularGuy
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@ARegularGuy, @TayFx, Part 2--- In World War II we saw the introduction of women into the workforce; they took the spots of where their husbands used to be all their husbands signed up for the military in the good old boy thing. After the war was over, men one of their jobs back And Rosie The Riveter wasn’t having any part of it. Women, at that time, were treated like children in the aspect of they were to be seen and not heard, and now they’re out making their own money and making decisions because their husbands are off in a different country fighting a war.
Centerstage SARS2. SARS2 two has proven to the world the e-commerce can sustain itself without an infrastructure with just a little bit of restructuring of business models in distribution such as the center of gravity distribution model, then a business can be very profitable in the e-commerce world. With the introduction of online shopping, it destroyed the old powerhouse Sears and is still hurting other traditional businesses that are not conforming to e-commerce
ARegularGuy
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@ARegularGuy, @TayFx, part 3---During the first stimulus package rolled out by the United States the IRS gave an option for recipients to be able to receive their stimulus checks in the unofficial, but official first ever US backed cryptocurrency, I do not know the name of it sadly, in Forbes they published an article talking about the Chinese coming out with their official digital currency of the yaun. New Zealand, Japan, and another country are also piloting their digital currency as well. Bitcoin as popular as it is set the map for that to come in the place. The coin has been around long before it became popular and was huge on the dark web as the only sort of currency that would be excepted by the shady dealers that deal in the dark web because if it’s blockchain technology with the currency not being able to be traced. So how do you get all these cryptocurrency‘s? You need computers. You need A lot of computers. Because the cryptocurrency needs to be mined its maintained on a network of computers. I’m not a computer science engineer or some type of manufacture of any kind of computers but I do know that platinum in Palladium are the main things that connect whole pieces together on the motherboard and circuits inside of the computer for The conductivity of it.
ARegularGuy
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@ARegularGuy, part 4 and final part. Traditionally platinum is used for this connection piece for all the little circuits inside the computer, but with the introduction of Palladium, a cheaper alternative we might see it go up as well and slowly replace platinum. Right now what we see is platinum and Palladium getting rejected after 618 retracement this is a good sign as if Palladium goes down then big businesses can buy it at a cheap price produce their materials they need and sell the electronics at a cheaper price thus stimulating buying and further propelling this drive forward to a digital currency and world!
Sorry for the spam bud , but only so much can fit in one comment. So, Mods im sorry it was a copy paste from an email i wrote myself!
YBearBull
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@ARegularGuy, you are just a speculator so there is no need to justify that platinum is the next big thing you have to follow the trend that's it nothing more complicated.
YBearBull
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@ARegularGuy, There is no need to mine crypto for governments take as an example ripple there in no miners or Iota ...
ARegularGuy
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@YBearBull, all i was getting at in essence is that those precious metals are going to be more valuable as e-commerce takes off. With the introduction of more and more computers the demand for those metals are going to go up. knowing why is just as important. if an economys i.e. japan depends on the export of electronics of any sorts the price is going to cut into profit margins which is going to affect shelf price which will then affect retail sales and ultimately affect interest rates. im not saying this is going to happen tomorrow but in 20 years its very viable. And in times like this when volatility is up its shifting the deck around and when the volatility dies down there is a good chance of a trend reversal.
were all speculators in FOREX unless youre a Centeral Bank