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Thread: Anyone else optimistic about silver now that the senate passed the tax bill?

  1. #1

    Default Anyone else optimistic about silver now that the senate passed the tax bill?

    The drunken Trump rally based on the potential of the tax reform bill is now all priced in (that was a nice little trick they pulled out of the bag after ZIRP and consecutive rounds of QE get one last rally), and silver is still holding solid above $16/oz. The economy never really got fixed, and now it will have to grow either on 1) more stimulus, 2) reducing interest rates, or 3) company performance that more than justifies the overinflated valuations (which is not going to happen). So the next course of action would be profit taking, which will cause equities to tank, and PMs to take off (finally). That's my analysis at this point, but I'm just an armchair silver permabull, so what do I know. If anyone can point out something I might not be considering, do tell.
    Last edited by kwyjibo; 12-04-2017 at 05:33 PM.

  2. #2

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    Yes, I'm trying to decide what s my next gun safe to buy, digital dial or the old type rotating, All the money I'm supposing to save on taxes, to buy more silver.

  3. #3

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    I think the tax reform and the Tax Cuts and Jobs Act will lead to stronger economic growth and families will have more disposable income to buy what they want, rather than the United States deciding for them where to best spend their money. This should boost the general stock market, drawing investment away from precious metals and mining stocks. The general stock market will go up, until it goes down. What precipitates that is anyone's guess.

    The Tax Cuts and Jobs Act may increase debt up to 1.5 to 2 trillion dollars over the next 10 years, or it may pay for itself.

    The Federal Reserve will try to prevent the economy from overheating by raising interest rates, attracting more people to buy United States dollars to buy United States debt. That will make for a stronger dollar, and weaker gold and silver prices.

    The only bright spot for gold and silver is that with great debt and rising interest rates, comes great interest payments on the national debt. That will cause the government to print more money to pay the increasing interest, or get serious about cutting government spending. My guess is that more money will be printed. Whether the rising interest rates can stamp out the rising inflation is anyone's guess.

    So, tax reform is good for tax cuts, economic growth, more jobs and increased wages. But it's bad for gold and silver prices.

    Meanwhile, low prices for silver and gold have consequences. Those consequences are low investment in silver and gold mines, with declining silver and gold production. Silver mine production peaked in 2015 and gold mine production may have peaked in 2016 or should plateau and peak this year. But it may take 2 to 5 years I would guess before we will see any noticeable upward pressure in the price of silver and gold.
    Legal Disclaimer: I am not a doctor, nor do I play one on TV.

    "It's tough to make predictions, especially about the future." -- Yogi Berra
    A variant of this has also been attributed to physicist Niels Bohr, and others.

    "Tis against some men’s principle to pay interest, and seems against others’ interest to pay the principal." -- Benjamin Franklin

    The School of Hard Knocks is where you get the lesson after you fail the test.

    Book title: "The Best Way to Rob a Bank Is to Own One"

  4. #4

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    I not letting go of anything until that giant elephant hiding under the lampshade in the corner is resolved one way or another (NORTH KOREA)

    Ag guy
    live for today, admit your faults, do the right thing (even if you don't want to) & trust God!
    This life is the training of the soul for the life to come. (accept that we live in a fallen world)
    Whether you know it or not, you are a spiritual eternal being! Ag guy

  5. #5

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    Quote Originally Posted by Ag guy View Post
    I not letting go of anything until that giant elephant hiding under the lampshade in the corner is resolved one way or another (NORTH KOREA)

    Ag guy
    Geo-politics is unpredictable. Silver follows gold, generally speaking, and geo-political conflict influences the price of gold substantially. Both gold and silver peaked approximately the same time in 1980, perhaps separated by a few months. People worried about World War III and Armageddon in the Middle East in late 1979 to early 1980.

    The Misery Index under President Jimmy Carter, the sum of the unemployment rate and inflation rate, was running close to 20% (inflation was about 10%?). It peaked at 21.98 in June 1980.



    What Happened to the Gold Price in 1980?
    January 14, 2008


    History

    In January 1980 gold was fixed at a record 850 USD an ounce while high inflation, strong oil prices , Soviet intervention in Afghanistan as well as the impact of the Iranian revolution prompted investors to heavily buy the metal.

    Adjusting for inflation, meant the 1980 record high price was actually $2,079 an ounce at 2006 prices, while, according to precious metals consultancy GFMS, the real average price in 1980 was calculated at $1,503.

    As a result of the removal of the gold standard by Nixon in 1971

    "Inflation in most countries at the end of 1979 was running in double digits,"
    Last edited by WhatsUpDoc1958; 12-04-2017 at 07:59 PM.
    Legal Disclaimer: I am not a doctor, nor do I play one on TV.

    "It's tough to make predictions, especially about the future." -- Yogi Berra
    A variant of this has also been attributed to physicist Niels Bohr, and others.

    "Tis against some men’s principle to pay interest, and seems against others’ interest to pay the principal." -- Benjamin Franklin

    The School of Hard Knocks is where you get the lesson after you fail the test.

    Book title: "The Best Way to Rob a Bank Is to Own One"

  6. #6

    Default

    Yeah I kept thinking of the lyrics to the song "Rocket Man burnin out his fuse up here alone....."

    You could buy a KIA (killed in action) and support the war effort....
    Thomas Jefferson is credited with writing, “When injustice becomes law, resistance becomes duty.” The seceding states in the Civil War period issued a similar declaration using the word “tyranny” as opposed to “injustice.”

  7. #7

    Default

    I think silver will aimlessly keep on going up and down so sure, it will be a factor on those ups and downs.

  8. #8

    Default

    Quote Originally Posted by WhatsUpDoc1958 View Post
    I think the tax reform and the Tax Cuts and Jobs Act will lead to stronger economic growth and families will have more disposable income to buy what they want, rather than the United States deciding for them where to best spend their money. This should boost the general stock market, drawing investment away from precious metals and mining stocks. The general stock market will go up, until it goes down. What precipitates that is anyone's guess.

    The Tax Cuts and Jobs Act may increase debt up to 1.5 to 2 trillion dollars over the next 10 years, or it may pay for itself.

    The Federal Reserve will try to prevent the economy from overheating by raising interest rates, attracting more people to buy United States dollars to buy United States debt. That will make for a stronger dollar, and weaker gold and silver prices.

    The only bright spot for gold and silver is that with great debt and rising interest rates, comes great interest payments on the national debt. That will cause the government to print more money to pay the increasing interest, or get serious about cutting government spending. My guess is that more money will be printed. Whether the rising interest rates can stamp out the rising inflation is anyone's guess.

    So, tax reform is good for tax cuts, economic growth, more jobs and increased wages. But it's bad for gold and silver prices.

    Meanwhile, low prices for silver and gold have consequences. Those consequences are low investment in silver and gold mines, with declining silver and gold production. Silver mine production peaked in 2015 and gold mine production may have peaked in 2016 or should plateau and peak this year. But it may take 2 to 5 years I would guess before we will see any noticeable upward pressure in the price of silver and gold.
    I think it's all priced in. The tax breaks don't even kick in until after 2018. So seeing if this will actually help matters won't be noticed until maybe 2+ years from now. The potential impetus for market gains based on more spending $ won't be there for a while, and in the meantime, profit takers will sell, leading to a market correction at the very least.

  9. #9

    Default

    Can anyone tell me what the bank rate, at the Fed is, currently?
    Found Equilibrium, Awaiting Equality

    We Wish to Welcome Tonight,
    At the Cabal,
    Our opening Act,
    Hillary Clinton and her Coup Group

    Government Budget and Government Shutdown Post #165

  10. #10

    Default

    4.25% but, is that the Bank Rate at the Fed?
    ?

    https://ycharts.com/indicators/bank_prime_loan_rate
    Found Equilibrium, Awaiting Equality

    We Wish to Welcome Tonight,
    At the Cabal,
    Our opening Act,
    Hillary Clinton and her Coup Group

    Government Budget and Government Shutdown Post #165

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