Silver Rally and Precious Metal Implications....
Well, it might be the time to look at precious metals and finally, say that their day is neigh. That could very well be the case but at the same time, it might not have any bearing on the future at all. After all in the new technologically driven market place, how much use will a bag of gold be to an artificially intelligent algorithm used to produce more GDP in a country? Can the algorithm use the gold to make more gold and more gold after that so that you can squirrel it away in a vault somewhere protecting yourself from weak or debased currencies?
The simple answer is, I don't really know.
You see they are creating new products and finding new ways to use older products all the time now. With energy abundance on the horizon what use will gold have?
Probably the same use that it has always had. To make jewelry and cosmetics.
It is not the most efficient conductor so it likely won't be used as a metal to carry current any time soon. You often hear from the talking heads how gold has been a store of value for over five thousand years.
While this is true 4900 of them have not seen the type of technological advances that we have experienced in the last 100 years of which the past fifty has seen the most advance. I have a tendency to agree with Warren Buffet and his outlook on Gold as a relic being careful at the same time not to take his word with too much weight as I doubt Warren would trade his money for a negative-yielding note either. However, he does bring into question its use and its future use.
I don't see it being a great store of value in the future unless you are going to peg an international currency to it to keep it from being misused.
Will they create such and SDR?
I have talked about this before and it is a possibility. That might be why gold is rallying so heavily at present.
Silver, on the other hand, is still caught in its lower range as you can see by the chart below. It has not entered into any sort of bullish run yet although we did look at a nice three dollar plus gain. How far it will go is anyone's guess but if you joined me the time to buy was at the bottom of the sideways range we have been in for the past ten years or so. It may rocket up to where gold is but it is a highly manipulated market and so I have little faith in such a move. I took the position as you recall because it made sense at the time. It still sort of does although your entry isn't as good and may be subject to downside pressure.
The problem more resides in we do not know what elements will be used the most in the near future and what will be discovered as artificial intelligence advances to be able to do all that the brain can do and more. We are talking about roughly ten to twelve years here folks. Not a long time.
So take the precious metals rally for what it really is. Nothing.
If you make some money great, but don't think about getting too rich. Cheers!
The simple answer is, I don't really know.
You see they are creating new products and finding new ways to use older products all the time now. With energy abundance on the horizon what use will gold have?
Probably the same use that it has always had. To make jewelry and cosmetics.
It is not the most efficient conductor so it likely won't be used as a metal to carry current any time soon. You often hear from the talking heads how gold has been a store of value for over five thousand years.
While this is true 4900 of them have not seen the type of technological advances that we have experienced in the last 100 years of which the past fifty has seen the most advance. I have a tendency to agree with Warren Buffet and his outlook on Gold as a relic being careful at the same time not to take his word with too much weight as I doubt Warren would trade his money for a negative-yielding note either. However, he does bring into question its use and its future use.
I don't see it being a great store of value in the future unless you are going to peg an international currency to it to keep it from being misused.
Will they create such and SDR?
I have talked about this before and it is a possibility. That might be why gold is rallying so heavily at present.
Silver, on the other hand, is still caught in its lower range as you can see by the chart below. It has not entered into any sort of bullish run yet although we did look at a nice three dollar plus gain. How far it will go is anyone's guess but if you joined me the time to buy was at the bottom of the sideways range we have been in for the past ten years or so. It may rocket up to where gold is but it is a highly manipulated market and so I have little faith in such a move. I took the position as you recall because it made sense at the time. It still sort of does although your entry isn't as good and may be subject to downside pressure.
The problem more resides in we do not know what elements will be used the most in the near future and what will be discovered as artificial intelligence advances to be able to do all that the brain can do and more. We are talking about roughly ten to twelve years here folks. Not a long time.
So take the precious metals rally for what it really is. Nothing.
If you make some money great, but don't think about getting too rich. Cheers!
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