Silver is on the rise!

All these senarios and no one mentions devaluing the dollar! It will happen overnight and without warning! This my friends will show the value of PMs.

 

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What do you think has been going on if not an adjustment? Every day, millions of people go to work and run their businesses the best they can, making whatever changes are required to be profitable under current conditions. This is basic economics, and it is beyond contestation. And regarding the thought that the stock market was dead in the late 70s early 80s period, it doesn't matter if you don't think that was the case. That's the way it was and Business Week ran a cover story on it. This isn't to suggest that everyone abandoned the stock market. But like now, and like you, many were convinced that is no longer representated a viable place to put money. http://www.businessweek.com/investor/content/mar2009/pi20090310_263462.htm They were wrong then, and you are likely to be wrong now.

I don't disagree that equities in the finance sector are volitile, but if that bothers you just invest in another sector or a mutual fund. Anyway, I hope that most of the people here aren't negatively influenced by your scare tactics. If they read the link, perhaps it will be come obvious that your mistake has been made before.

 

That's some assumption. Firstly, you're referring to income tax, since all those people (even those too poor to pay income tax) pay sales tax, gas tax, payroll taxes and others. Secondly, that number includes many ultra-wealthy and some of the largest corporations on earth actually have very large negative tax rates. Those people definitely do contribute to the markets, they own the markets.

It's a red herring, and a very poor one at that.

Regarding silver: you can always play the leveraged silver ETFs, AGQ (double long silver) and ZSL (double short silver)

 

As long as china continues buying the treasury notes' the dollar will continue to remain strong, i don't see this changing in the short run.

 

Very good! Except the ultra wealthy that can get away with paying no tax are not factored into that and account for a very small minority.

 

Amazing. Your article proves what I said exactly. Interest rates were allowed to rise to 16%+ which halted the inflation caused by excessive debt. I would have thought you would not have succumbed to the reporting of a grocery store tabloid, especially one aligned with wall street. Even worse you presented here as some sort of evidence. If this is the basis for your thinking, I'd say you need attempt to get some context.

Ever rising equities (stocks) at any cost and without regard at all to the real economy, fueled by endless free debt with insurances from the taxpayers, ends up destroying the economy. They stopped it in 1980 by letting rates rise as high as they did. They refuse to let this happen now. Your article proves what I said above, you simply failed to interpret properly.

 

China actually sold off a lot of these notes to buy gold last month during the dip in prices.

 

If they sold it would have plunged. The Gold they has is minimal compared to money they hold in notes, which still continue buying and as for their gold reserves they barely even hold 15% of what the US has and barely more than the swiss.

 

They have not published what they bought last month, but it's clear they are intending to increase their reserves considerably. On your bigger point, the USA is having trouble selling it's debt. It's being bought by the Federal Reserve and covered by printing money. This should be an illegal act, but they are doing it anyway. It's the advantage of having setup a sham like the FR in the first place.

(With that said, people should looking into moving some of their cash into the Inflation Protected Savings Bond, I-Bond. It's paying a decent rate especially compared to money in the bank, the interest isn't subject to state taxation, and taxes are not due until the year it's redeemed. There is a limit of $5000/year with paper and another $5000/year electronic.)

 

I see no reports of them selling any notes for the gold. They have plenty of money to buy both for diversification.

 

That's good news! As good as PMs might be, they aren't foolproof. Nothing is.

 

How so? http://www.treasury.gov/resource-ce...rest-rates/Pages/TextView.aspx?data=realyield
Even during the debt ceiling stupidity, the dollar turned out to be the market's safe haven.

 

Everyone can read the article and decide for themselves. The point is that there are tremendous investment opportunities even when things look bad for the economy -- provided one can see past the current problems. You obviously cant. Some of us can. Things were very bad when this article was written. They didn't begin to improve until about two years later when the market started it's great bull market advance from under 900 to present levels. Business Week was a highly respected business journal back then regardless of what you think now. Even they gave in to the pessimism -- at almost exactly the wrong time -- just like you.

 

But there is more debt than buyers. Hence trouble. Else the FR would not need to be monetizing it.

 

This is another logical fallacy and one that even you are not following. You simply ignore everything said and keep stating "buy stocks", "buy stocks because they did well in 1980" "my children are buying stocks", "I'm right because of a BW article in 1979", etc etc. This isn't keeping your eyes open to the future, it's denying that it changes. The remaining platitudes such as "enormous opportunities" and calling me names are irrelevant since they are not a subject of this topic but rather a distraction.

 

Some folks may benefit from this...

http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt

 

Yes indeed. It shows that China's holding of US paper are at a 13 month low and the abrupt new trend is falling. Since the summer. Just as I said. Thanks for posting.

 

You shouldn't be investing. But some others may see that while the details change, human nature does not. As Warren Buffett says, "You pay a high price for a cheery consensus." I know you don't believe history has any lessons to teach you -- you are too smart for that. But buying high quality stocks when they are available at reasonable prices is a time-tested formula for success. This necessitates buying when the market looks weak, or the economy is shaky, or whatever the problem of the moment might be. I realize you will only buy when things look good and stock prices are very high. Some of us don't do it that way.

 

You are attempting to discredit me rather than address the points made above. It doesn't work. It only proves you have no logical argument for your position. "Time Tested Forumlas" only work in static environments.

 

I always try to post useful and honest information regardless of who the supporters or detractors might be. I noticed that China's holdings are higher than a year ago, but lower than recent months. I don't know if there are any seasonal factors involved or if it is the beginning of a trend in selling. Time will tell. On a total basis, foreign holdings continue to rise.