How low will it go ?

Debt is one of the reasons PMs have a great future. The real question is how high can it go before it implodes:

@Baley said:
Why hasn't it "imploded" yet?

And since it hasn't, why would it?

deja vu 2008

the chickens always come home to roost

@derryb said:

@Baley said:
Why hasn't it "imploded" yet?

And since it hasn't, why would it?

deja vu 2008

the chickens always come home to roost

And gold dropped 30% and equities were the buy of a generation.

The economy never goes to zero...dang it!!

And having raised free range chickens, I know that sometimes they never come home.

On the greed vs. fear scale, I think we're still in the fear cycle (for metals), but not drastically so. OTOH, I don't see much greed in the precious metals market right now, either.

At some point, the bond market will decide that more debt just doesn't make sense and metals will look like heaven. Right now, the QE stock market anesthetic hasn't worn off yet. When it does, the stock market won't feel so good, then again - I've been saying that for about 9 years now.

I might've been a little early in suggesting metals as a good insurance against out of control gov.com debt issuance and a bond market blowoff. Still, a gradual accumulation of silver (or gold, or platinum) over the past 9 years wouldn't have been such a bad thing. All it means is that less was bought at the peak and more was bought along the low spots - which is the objective, I think.

Jmski....I would just ask you, to ask yourself, why you were early.

@TwoSides2aCoin said:
$16.25 ? $15.75 ? Next stop is the ceiling not the floor.

I hope you are right. Up would be nice...

gold has down 20 dollars early this morning, now it's up 3.70 as the dow is now tanking down over 400. silver will follow gold

Jmski....I would just ask you, to ask yourself, why you were early.

The bond market seems to be slowly turning. Slow is how a supertanker turns. It's better than sinking, but the metals are still under pressure. The window for continued buying is still open. Being early is to avoid being onboard in case the supertanker is named Exxon Valdez.

Are prices down? Heading down? Down already? It's harder to buy when prices are down. Which is when things should be bought.

Unfortunately not low enough for me to buy it all. Stack on!

@derryb said:

@cohodk said:
Buying early is like arriving today at the airport for next Wednesday's flight.

prices aren't scheduled. Early investments always trump late investments.

Opportunity costs can be massive....have the early birds paid enough yet?

@derryb said:

@cohodk said:

@derryb said:

@cohodk said:
Buying early is like arriving today at the airport for next Wednesday's flight.

prices aren't scheduled. Early investments always trump late investments.

Opportunity costs can be massive....have the early birds paid enough yet?

you dig for your worms and I'll dig for mine

Mine are bigger. Don't be envious. Lol

So much talk about time..."it's only a matter of time", "time will tell"....yet why do so few truly understand it?

Why is Jamie Dimon stacking silver? Doesn't he know that it's too early?

Yeah, and he's been early!

@jmski52 said:

Opportunity costs when interest rates are very low, become insignificant in terms of risk/reward.

Wow...is that ever wrong.

__Opportunity costs when interest rates are very low, become insignificant in terms of risk/reward.

Wow...is that ever wrong.__

Okay, I'll bite - tell me what opportunity costs are massive when interest rates are low. Are you suggesting that buying "low risk" Treasuries when interest rates are so low - is a stellar move? Because, it's not.

Opportunity costs may apply in IRR analysis, but that's not the same as personal investment unless you own a business where it's relevant.

If you are referring to a stock fund and opportunity costs, you may have a point as long as Fed has your back and as long as the debt fiasco doesn't come to fruition. If you have insider information about that, I'm all ears.

If you are referring to a stock fund and opportunity costs, you may have a point as long as Fed has your back and as long as the debt fiasco doesn't come to fruition.

You are aware that the stock market is ownership of equity that produce goods and provide services for human consumption, right? Are you expecting the end of humankind?

@derryb said:

@cohodk said:
There are 2 sides to the debt market. You can either collect low interest, or pay low interest.

Leverage. Reinvestment. Huge opportunity.

35 years ago investors were given a gift of high interest rates. In the last few years they were given another.

But, there is a spread between the two sides. The consumer always pays more interest than the saver collects. Otherwise the money changers would not profit from the consumers' needs.

And when it comes to leverage, keep in mind that under the current fractional lending policy banks actually loan out more than 90% of your savings. Consider your deposits to actually be a loan to the bank with them paying less interest to you than you have to pay to them when you borrow from them.

Everything I wrote flew right over your head, didn't it?

You are comparing a savings account to utilizing low interest debt to finance productive asset purchases?

And what effect does inflation have on those low interest loans?

@jmski52 said:
Leverage. Reinvestment. Huge opportunity.

Sounds like 1927.

Please expound.

@PerryHall said:

@cohodk said:

@jmski52 said:
Leverage. Reinvestment. Huge opportunity.

Sounds like 1927.

Please expound.

He may have meant 1929 just before the stock market crashed on "Black Friday" which ushered in the Great Depression.

Even if so, I would really love to see how he thinks either of those years looks like today. Specific economic and demographic data with inter-market analysis would greatly enhance his contention.