So this is not what everyone was expecting. The Debt Ceiling is raised, and there hasn't been a Precious Metal sell-off. Gold finally broke through its previous $1515 high in AUD, silver went up over $2 AUD in less than 24 hours. Gold's one day rise I think is one of the highest ever. The US Market had a big sell-off with the S&P now negative for the Year. Could be an interesting rest of the week.
Well may we say "God save the United States of America" . . . for nothing will save them from a clear intention to surge towards $17T in debt.
I'm pretty bummed I was thinking of placing an order the other day when silver was at 37.50 Cad, wish I did now. Thought there would be another drop like a couple weeks ago, oh well
Anyone notice this? First credit agency to cut US credit rating: http://www.businessinsider.com/egan-jones-officially-cuts-us-credit-rating-2011-7
Why are you all surprised? I honestly don't understand how you could be. Raising the debt ceiling means printing an extra couple trillion dollars, further devaluing their fiat. As long as you understand the basic principle, it's the most bullish indicator you'll get for gold and silver all year. Anyone who has access to google will be able to find out that information & as such, will be throwing more of their savings/wealth in that direction. I don't assume we're the only enlightened few on the planet who understands these fundamentals and whilst there's a lot of stupid money in the system, there's also a minority of really big fish with billions to dump into Gold and Silver. Remember that all the gold in the entire world in 2011 would fit onto a tennis court and all the silver in the world is currently only 2/3 of even THAT amount. The metals market is small. With enough heavy hitters coming to the party, it's pretty easy to see the price get pumped and in the weeks and months ahead when the US flounders even with all the extra printing, you'll see a change in the market like you haven't seen this lifetime. Peak debt saturation of the US passed in 2008. Anyone (again) with access to Google can find this information out and will know straight up that this continued printing in the US will not work. People are slowly, but surely, waking up and the 'extend and pretenders' are losing their power to keep the sheeple asleep.
I bought some right before the ceiling announcement and it dropped 15 AUD 5 mins after the order was confirmed, I was so bummed LOL Now I'm laughing. But chances are the spot Gold/Silver will just tank before my order gets shipped to my place...
I guess it depends how you measure it. I certainly don't feel richer though. My wage won't rise to cover the higher prices for things because the AUD has dropped in value.
I would suggest you measure it in ounces. As you say, the volatility in fiat currencies rules the A$ out as a store of value.
Fair point... But there was a huge gain in Precious Metals during the lead-up to this Debt Ceiling extension, whereas during the lead-up to 12 FEB 2010 When the Debt Ceiling was last raised by $2 Trillion there was a big sell-off. So we are definitely in uncharted waters here.
I'd daresay it's because of the information flow and the increased awareness of the public after the last 'near miss'. People are getting educated now. There's a growing unease in the system and the public (who are now shitting their pants over the fallout of the greatest ponzi scheme the world has ever seen) are starting to ask uncomfortable questions. Not even 2 years after they last raised the ceiling 'or the world will end', here they are doing the same thing again. We are still no where near the top of this market, even though historic tops are being pushed. The US dollar has not yet gone under and still remains the standard for trade, the world economy has not seized up yet and the manipulated metal PAPER market is still running full steam ahead. Precious Metals are the last line of defence against an ailing system and with normalcy bias with the populace still very much in play, that vast majority still haven't moved towards the bottom line. What we see now is a building move towards the inevitable, but still by and large the market and populace as a whole are largely unaware of what's going on. Remembering of course that for the vast majority of people in the world, the mainstream media is their only source of news and information. What we're seeing now in the PM market is honestly nothing to really get excited about. We're no where near the blow off top yet. The US alone still has nearly 200 TRILLION in unfunded liabilities off the books to account for and the international derivatives market is even bigger than that. There's so much fiat now globally it's like a blizzard of paper and what ISN'T tied up to service debt will at some point have to rationally be converted to commodities to protect it's value. When THAT all gets blown to hell and people are rushing madly for every scrap of metal they can get, and the 100-1 paper PM market is shown for the fraud it is - when it's a case of 'physical or nothing' THEN you're going to see something that will have you shaking your heads in disbelief. This current situation is just a symptom and prelude of bigger things to come. When we DO get that global crisis, from which no amount of fiat printing will save us, THAT'S when you're going to really see what your money is worth. Right now, it's all just smoke and mirrors with promises on pieces of paper. It cannot last.
I think you are misinterpreting people's reactions Auspm. I for one, and I am sure it is the same with most others on this site, are not suprised at all that gold has increased in value. We all understand the principal - it is just the magnitude of the surge and how soon the market has reacted that was suprising.
