Bernanke will keep the PM prices high with QE3

It's certainly possible the PM's are overvalued. It's also possible that they only got as high as they are due to factors that will continue to pressure them upward. While it is risky to buy at these highs, it's also risky not to have any on hand. If the prices tank, you still have some worth, but if the dollar tanks you might end up with nothing. For newcomers, I think getting in with as much as you can afford to lose would be prudent.

I'm not really so concerned with QE3 as I am with the dollar index. By the time QE2 is done we might be in line for new currency.

http://www.mineweb.com/mineweb/view/mineweb/en/page72068?oid=121747&sn=Detail&pid=102055

 

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Exactly, I've had the same discussion! There are a surprising number of people who see no connection between inflating the money supply and adverse economic consequences. But when I ask "well why not just print up 14 trillion and be done with it" they have no response. I think most people are simply ignorant of economics and others perhaps stuck in the comfort of the status quo.

Regards,

Bluesboy65

 

YoYospin/dave92029:

Thanks for responding to my question and helping me understand a little better.

 

Do have another question. Can anyone tell me where to look up the U.S. Dollar Index and the Interest Rate on 10 yr. Treasury Debt?
Are these 2 things updated daily? Weekly? Monthly? As always, thanks for your help.

 

Hi Schnauzer, you can get it lots of places but CNBC is where I get it. Go to the Markets link and select either Currencies or Bonds. Here's a link to the currency page:

http://www.cnbc.com/id/15839178/site/14081545/

Regards,

Bluesboy65

 

I agree, And when the time comes that dollars is worthless. These people will get a real dose of economics...

 

My guess is... If the dollar is to collapse. The US will not be able to buy anything until the "new" dollar was to have a strong backing. Which IMO, is to get rid of the Fed reserve. And start all over again with a strong backing. OPEC might "front" oil to the US if needed. China IMO, would love to get in as the new reserve currentcy.
This snowball started a long time ago. The feds are buying there own debt! No one else wants it anymore. They are full. Now it's a monster that can't be stopped. How does the US govenment fix this problem? They can't. They have dug such a deep hole. There is no turning back.

 

Bluesboy65: Thanks for the link RE: the dollar index and 10 yr. treasury debt.

 

At this point Bernanke does not matter and nothing he says will change this upward trend! At least not with this Gaddafi mess going on! Silver and gold will continue on the rise and everyone holding will be amazed!!

 

I think this is easier to estimate than many believe. Note that it is easier, not easy. But silver is a commodity and most commodities eventually revert to a price that is at or slightly above the all-in cost of production. Not the cash cost, but the total cost including exploration, infrustructure, and return on capital. Now some will point out that silver is also mined as a by-product, and this is true. But without the primary silver mines in the world, there are not enough ounces to satisfy industrial demand. My personal estimate is around $20.

 

I disagree that this is the logical conclusion. I've never heard anyone every propose the payoff of the debt by printing money. Can you provide a source for this assertion? The Fed has pretty clearly stated their intention, and that isn't it. So you can agree or disagree with the policy, but it should not be misstated.

 

Lets stick with one missed point at at time. Do you or do you not think your disagreement with Dave was missing his point?

 

I neither agreed nor disagreed with Dave. The comment stands on its own as a followup.

 

Oh OK, so when you wrote "So the issue you raise is a strawman that really doesn't prove anything" you were not disagreeing with the point he was trying to prove? Ok Cloud, whatever you say man...

 

It is what it is Blues. If you want to believe that the concept is not a strawman but a real possibility, that is your right. I would hope that most people would not.

 

Another method of evaluating the value of a commodity is to revalue all the other commodities in terms of your targeted commodity.

 

Miss #3. But I get it, you will never directly answer the question (post #37).

I will let you in on what everyone else has already figured out, when you want to test the strength of an idea you test it using an extreme case to see if it breaks down. If it does not break down, you have a rock solid defensible idea. If it breaks down then you need to reexamine your thesis. In Vess1's post he was challenging the idea that loose Fed policy has no adverse impact. To test the idea, he provided the extreme case where our national debt is simply paid off. This was clearly a challenge to an idea and NOT A RECOMMENDED COURSE OF ACTION. So when you started going off about how there is not enough money... strawman ... blah blah blah you were criticizing a point Vess was not making. Pretty simple concept really.