Sean’s Rant

Although the below film is outdated and does not reflect the recent swing towards the dollar, it rings true and projects where it will go. I don’t see the other currencies being too successful either though, considering they aren’t gold backed either. That is why I strongly support gold silver and oil (GLD, SLV, USO or BP). I own USO and BP. 

Gold & Silver are jumping because of the proposed fed rate cut (lowers the value of the dollar), and if the market comes back the money people have invested in “safe” treasuries will be put back into the market and the dollar will drop like a rock, pushing gold & silver sky high. If you want to keep track of the dollar index it is (DX-Y.NYB), or just search dollar index. 

I just talked about this here, but I want to go over one portion of what Buffett said again. He said that there is a guarantee of inflation. There is not a guarantee of the economy turning around soon, although he is betting long term. So here’s my play and why I picked the investment class ratios I did. 

Just an FYI on silver right now. There is extremely limited supply, and huge demand. Online wholesalers of silver are running out of junk coin and small bullion (usually used for trading), but the spot price is going down? This is counter to what should happen. On a supply/demand graph, if demand remains the same and supply goes down, price will go up. If supply remains the same and demand goes up, price goes up. If demand goes up and supply goes down, price should go up even more than either of the two happening individually. Why is silver not going up in the spot market? This is counterintuitive…