I sold off my large 26 year physical bullion positions when it peaked. Then started acquiring again the last 12 months on downward large dips. IMO metals will climb bc of several factors. Among them rate increases, there has also been an unprecedented 10 year historical low interest rate, that will catch up to the markets, eventually. How? Corporate debt is ridiculously high bc they fed at the trough for 10 long years like little piggies. They could not control themselves, just like homeowners could not back in 00-08’ with non-stated no doc verification loans. Which predictably, not only poisoned our banks, our markets, but the world who invests into this country and it’s markets. This started the fed chain reaction of 10 years of low rates, which set the table for the next more pending tsnumai of defaults. #1 the coming massive corp defaults we will see. #2 another round of real estate foreclosures in both residential and commercial. Why? Majority of homeowners who bought after the great recession, the prices were still 35% over priced and those people a big majority could not qualify under 3% down payments- let alone 10-20%. Because of debt-income ratios, they were forced to buy residential properties using ARM’s such as 7-1, just to qualify. Guess where those ARMS’s are tied to? Their daddy, the LIBOR in England where as rates rise, which they were, the monthly payments will consistently increase- not much at first- but over next few years, they certainly will. It’ll be a slow burn of defaults. But a big one. Commercial will be a nightmare of defaults as well. Matter of fact, I know people who work at banks that oversee defaulted properties, and they are already seeing increases this past 16 months. #3 will be enormous personal credit card debt out there. Default city.
Then you factor and analyze the domestic political issues with dems/repubs fighting, along with racial unrest inside this country, it’s a powder keg, which could easily spill over into serious dark clouds for this country. The issues surrounding our current president is one that could alone roil our markets - metals will spike. Like or dislike Trump, or have no opinion, the moment that investiigation started, regardless of how it started. The big picture people are not seeing is that they are arguing on how and why it was started. The problem was and still is- is that it will not end well more than likely. Once it started, they were going to uncover things know one knew. Americans gave their fighting words out politically- but they don’t understand that when the truth comes out- the markets will tumble and tgey’ll flee where? Of course metals- just like when great recession occurred. Wall St cycles out. Always. We have a fake artificially and PARALLEL bull run side by side in RE and stocks- for 8-10 years- never happened before. This isn’t a real market, never was. There are going to be some really bad blood in the streets. It’s only a matter of time.
You have to also analyze the foreign intelligence reports of the linking up of china, russia, north korea, cuba and of course heightened fighting still in the ME and issues with Venezuela.
Yeah I can think of some very time proven bullet proof reasons to be back in acquiring bullion and adding to my metal traded stocks.
It is coming, people just do not see it yet. Might take a couple of years or could be less, who knows maybe longer.
The other issue is after 11’ the JV miners who NEVER actually pull off the transition of exploration to actual mining was a complete bust. They could not raise money either. In 17’ that started changing and money started pouring back into these types of mining corps. Actually it’s been weak for 20 years a lack of consistent digging metals out of the earth. Silver is one of them. So that def will also factor into metal prices climbing mol in future.
Mav
