Standard & Poor's has downgraded the United States' AAA rating for the first time ever. S&P cut the long-term US rating by one notch to AA+ with a negative outlook, citing concerns about budget deficits. Nicely timed right at the end of the weeks trading I note. I wonder what the silver market will do on Monday morning.........
So does this mean lower bond rates (higher interest rates) or has this downgrade already been factored in?
http://video.foxbusiness.com/v/4651704/geithner-no-risk-us-will-lose-aaa-credit-rating/ april 2011 ohhhh timmy
I suspect the markets had already priced in a downgrade by S&P, as far as gold/silver i think we could see a move in gold how large really depends on how the market perceives this news. Most investors don't need S&P to tell them about a downgrade, they had already priced it in. If recession is coming and Thursday/Friday were anything to go by we could see a slight drop in Gold and a more significant drop in silver as it was evident Thursday/Friday that silver was not a safe haven. CHF, YEN & Gold were the only real winners this week.
Wow he's talking it up isn't he, as you'd expect ... how many times did he say "Listen carefully now"?
Seriously worried Silver will get destroyed on Monday.... i'm not sure people view it the same as gold.
Now if you listen carefully Tim, no matter how good you make things sound it doesn't change how bad they are.
Funds who are limited to hold AAA rated debt will be obliged to sell. Shoot up of gold... Silver has an industrial component. So might lag behind gold.. but still go up nonetheless. Obama trying to talk his way out but i think QE2.5 is upon us.
I just bought silver before I heard this announcement so I am crossing my fingers that it goes up not down!
To be followed by QE2.5.1 2.5.2 2.5.2.1 then we put them up against a wall and shoot them, in the time honoured tradition of the abused and disillusioned middle class
Thinking of it long term is the best option, otherwise you'll have all the stress and non of the profit. PMs are for the long run as they'll go up and down, but overall up.
Not necessarily so. The first thing that Fed did was to issue notice to banks that risk weights of Treasuries stay unaffected. You can find that on Zero Hedge. Which is primarily to ensure that bonds stay the top rated collateral for borrowing purposes, which would be a far bigger problem than funds selling, but it will handle the funds problem as well. I mean, the accounting change from 2009 is still effective where banks carry the utter crap for 100 cents in a dollar is still in effect. Why this will be any different?
The real drama will unfold when the other 2 agencies downgrade.... i guess monday will be a good preview.
Some, but not all of them - YET. They will eventually. Reason? Few. Amount of gold available isn't that high after all, and CB are the ones with biggest pockets. Then You have ever increasing price that some day will reach critical point etc, As Gold is an end game (like it, hate it, face it) silver is a great mean to get there. We humans have encoded in our heads that Gold & Silver are money.
Holding physical silver is a lot diffrent to shares, you know your going to lose on the shares if you keep them long enough. Not so silver.
