Current Thoughts 9/17/2017

My latest article for the website in case you missed it last week; National Debt Surpasses $20 Trillion and Gold Falls

There was an article last week that was somewhat bashing gold, asking if the metals still matter; Gold And Silver: Do They Still Matter?

Two comments I posted in reply to it follow;

1. Gold never changes. You bury it in your backyard 10 years ago dig it up today, and it’s the same gold. Only what it is priced in changes over time. Do dollars still matter? Can one print unlimited amounts of dollars? See #2 for example of currency debasement and purchasing power over time.

2. My 1964 90% silver quarter could purchase me about a gallon of gas in 1964. Same with my 1965 quarter. That same 1964 quarter, exchanged for the scrip of the day (dollars), can still buy me a gallon of gas today. The 1965 quarter would get me $0.25 worth of gas today. Does the 1965 quarter matter or the 1964 quarter? One will always get me $0.25 of gas and the other will always buy me a gallon of gas. I think I’ll stick with my 1964 quarter. Bags of them.Lastly, own stocks, bonds, real estate or what have you. But a little monetary insurance against government failures, and a lifetime of failures for every currency ever created, might make sense for some.

I think the most important aspect to owning physical metals is insurance against the unknown of what our government does to our money, each and every year. Or, if you read #2 above, known, by many of us. That’s why we own the metals, as a way to maintain our purchasing power over time. Sure, sometimes the dollar is better and other times metals are better. Right now we are in a micro pullback from the recent highs, but still in a mid-term bull market. We should still head over $1,400 and this dip is a good buying opportunity. Once over $1,400 it gets a little murky and at some point we still have the deflationary credit contraction to deal with. The more the stock market moves us, the worse it will be.

There are many old timers who are already calling the stock market a bubble, the latest is billionaire Tiger Management’s Julian Robertson.  At age 85, maybe some of us should listen to our elders. 

But all CNBC and the White House do is push up the hype on Tax Reform (notice no one talks about Heath Care reform any longer? The tax reform is revenue neutral at best as any tax savings is offset by increased spending. It’s a joke to me, but the stock market soaks it up and moves higher.

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About Doug Eberhardt

Doug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534


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