$ rises/falls w u.s. mood swings CRASH JP MORGAN BUY SILVER
Some of those commenting on maxkeiser.com today, Monday, January 17, 2011 were concerned about the dip in gold and silver prices.
Most U.S. citizens follow only the mainstream media which means hearing about the bullish stock market every day, but going to the gas pump every few days. This causes mood swings which show up in the prices of gold and silver as people move back and forth from equities to gold and silver. People drive a little less during the winter months so gold and silver are down.
I bet if everyone who owned alot of stock went to the pump on the same day, the Dow would rise and fall sharply every week.
Remember, most well off people choose to drive and show off their luxury cars, but find themselves needing to stop and refuel often due to the 20- miles per gallon most big luxury SUV's get.
I think the stronger dollar right now is totally psychological if you discount the manipulation of gold and silver. Gold is partially psychological too, except that it is durable, liquid and scarce (gold isn't increasing in quantity as much as dollars are (talk about understatements)). We know there's about 2 olympic swimming pools of gold - maybe new discoveries will lead to the building of a third pool some day.
By the way, can anybody tell me how many olympic swimming pools of silver there are?
Some people are saying gold and silver will rally in the spring, but so will automobile use and thus gas station stops.
So wait until March to buy gold and silver or don't, but try to remember that this is about continually adding to the supply of already too many dollars, not the prices of gold and silver.
In the long run it just doesn't matter - unless currencies better than them come along, if ever, gold and silver have to go up along with more and more dollars, even with manipulation - it's simple arithmetic.
No comments:
Post a Comment