iShares Silver Trust (SLV)

[AlwaysRed]

This is interesting.

Yesterday the dollar crashed hard and continues to do so today:

https://www.marketwatch.com/investing/index/dxy?mod=home-page

Because the price of SLV is linked to the dollar and the markets the price skyrocketed. And continues to do so today:

https://www.bullionvault.com/silver-price-chart.do

Now this is what I find interesting. Because the dollar is crashing so hard the price of silver should be soaring. Surely more than it is.

Well look at this:

https://www.cmegroup.com/markets/metals/precious/silver.volume.html

They used 85,460 SLV futures to control the moonshot that silver took yesterday. Even when they don't need to control the price due to deliveries, they still use MASSIVE amounts of SLV futures to simply control the price so it doesn't get too high too fast. Let's look again tomorrow and see how much they will use today to control the price as the dollar continues to fall.

Why is the dollar falling?

Look at the 3 year chart here:

https://www.marketwatch.com/investing/index/dxy?mod=home-page

Then look at the recent rate hikes:

Rate hikes 2022-present


Meeting date Rate change Target range
March 15-16, 2022 +25 basis points 0.25-0.5 percent
May 3-4, 2022 +50 basis points 0.75-1 percent
June 14-15, 2022 +75 basis points 1.50-1.75 percent
July 26-27, 2022 +75 basis points 2.25-2.5 percent
Sept. 20-21, 2022 +75 basis points 3-3.25 percent
Nov. 1-2, 2022 +75 basis points 3.75-4 percent
Dec. 13-14, 2022 +50 basis points 4.25-4.5 percent
Jan. 31-Feb. 1, 2023 +25 basis points 4.5-4.75 percent
March 21-22, 2023 +25 basis points 4.75-5 percent
May 2-3, 2023 +25 basis points 5-5.25 percent
Source: Fed’s board of governors

Rate hikes dollar strengthens. Rate hikes DOW falls.

Compare the rate increases along with the DOW and see how the market was affected:

https://www.marketwatch.com/investing/index/djia?mod=home-page

When they raise rates the dollar strengthens. At the same time the market crashes. Investors flee from stocks and jump in bonds because the rates are going up and the market is going down. Also other currencies are weakening against the dollar so other countries will buy more dollars.

They say they are raising rates to control inflation. And that is true. It does slow the increase of money creation. Less people are borrowing money into existence because it is more expensive to do so..

Now if they believe that they are getting inflation under control they will be less likely to raise rates. And right now they are paused. They threatened to raise rates at the end of this month again and that shook the markets. But the reason that the dollar is losing strength right now is because they have paused raising rates.

If they stop raising rates that will be bad for the dollar and good for markets.
If they start to CUT rates the stock market will fly.
Silver would fly too, however they have their finger on the SLV futures key and they will be controlling the price of silver the entire way.

So always watch those rates and follow how the markets react. There will be a time in the near future where the markets are going to fly and we can make huge gains in the market.