Weighing a Silver Investment Versus Stocks

We are starting to see some real volatility enter the market and the chances of a Fed rate cut of .50 basis points at their next meeting in September rise to 55.5%. On Monday with that mini market crash that odds were at 85.5% of a .50 rate cut. Since that Monday, what has happened? The answer might be a political one.

On Monday Donald Trump came out and said that the stock market crash was Presidential candidate’s Kamala’s Harris fault. Since that time, the stock market through today has recovered almost all the losses. What changed for this recovery?

Volatility spiked up on Monday and the 2x Long VIX Futures ETF shot up over 80% at one time to 20.73 and has since settled back down to 8.88. Ironically today is 8/8/24 and I remember this date because when I was a Cubs fan, they installed lights at Wrigley on 8/8/88. My parents went to that game and the baseball gods were in full effect not agreeing with the move and poured rain down that night, canceling the game.

What else does 888 signify? From Wikipedia: In Chinese numerology, 888 usually means triple fortune, due to 8 (pinyin: bā) sounds like 發(pinyin: fā) of 發達 (prosperity), and triplet of it is a form of strengthening of the digit 8. On its own, the number 8 is often associated with great fortune, wealth and spiritual enlightenment. Hence, 888 is considered triple.

Perhaps if you buy UVIX at 8.88 it might bring you good fortune. Undoubtedly we will move higher in volatility again but for now, markets are seeing calm as the Presidential race takes center stage.

Not much has really happened in news since Monday. The Fed didn’t panic and intervene with a rate cut. They did put their plunge protection team to work and bought the market. Technically speaking, this rebound is just from an oversold market.

The data that did come in today, like the Initial Jobless Claims today, was better than expected. But notice one thing to the right of today’s number in red. The last data that came in was revised lower to 250k. They seem to do this every single week. So are they just playing political games to make the data always look good or what?

Stocks are still concluding a bull market run that has lasted with very few hiccups about 13 years. During this time volatility has been dead. It leads one to think that stocks always go up. There are times however, and Monday was not one of those times, where there should be consideration given to selling their stocks and moving to cash or better yet, because the dollar is in deep trouble here soon, gold and silver.

 

CD’s and money markets at the bank will see their interest payout come down with the coming Fed rate cut. Silver and gold will take off higher. You can see the nice rebound in silver just today. When silver goes, it will be like the the Old Faithful geyser shooting up, just like it did in the 70’s and 2000’s.

According to Google AI, a stock market has experienced a pattern of crashing every seven to eight years since 1900. There are corrections and their are bear markets. We are getting ready to enter a prolonged bear market yet most investors think stocks always go up. The purpose of my forthcoming book is to give you enough awareness to know if we are past the point of no return when it comes to an oversold condition like Monday, but enter into something much worse. Investing in an index fund isn’t going to save you from what’s to come. Gold and especially silver will offer you some insurance against a dollar decline and also maintain purchasing power.

Back To Politics

In an election year, if you think your candidate is going to win, you do everything in your power to make sure that happens. Between now and the election, this means pushing the stock market higher. This also means keeping the dollar strong. But as we saw Monday, when the dollar broke below 103, the Fed doesn’t have control of the markets. They can intervene when necessary but they don’t have complete control.

In fact, the monetary system in the U.S. has already failed twice. Those were times when the country didn’t have computer algorithms, AI, $35 trillion of debt or a Federal Reserve. And why would one put faith in a non-government entity that simply provides the fentanyl to Congress so they can continue their addiction to spending other people’s money? The Fed can’t even manage their own finances being over $6.6 trillion in debt. When that change from the prior week number goes positive for a couple months, you can bet the gig is up for the Fed and they have lost control.

The Fed for now is cutting their balance sheet still but keep an eye on this data as it signifies the health of the ones doing the printing of the money.

Yes, all of the above you can see why I am pounding my fists on the table as to why you should own gold and silver. Silver will outpace gold on the next big move up. It’s coming. Will you be a part of it?

If your dollar based portfolio is $1 million and you see the dollar lose 10% you lose $100,000 in purchasing power if your other assets stayed the same.

Looking at that chart alone may not motivate you to buy silver because your average investor can’t comprehend it. So let’s put it into something you can see has been happening before your very eyes but can’t see.

You have that opportunity today to protect your dollar based portfolio with silver. You can buy over priced stocks or under priced silver. Which one of these moving forward protects the potential of the dollar falling to it’s low of 72.53 low on 4/1/08 just before the lights went out at Wrigley?