Debt Ceiling Effects On Gold and Silver

Well we are close to defaulting on our bills as a country and the big question is what kind of effect will that have on the US dollar as well as our precious metals we all covet here on this site. There is also another part of this that is pretty scary.

A real possibility that we get our credit rating again lowered from AAA. All these things will have a major effect on the market in the next day. The stock market is already showing the effects from this situation and you have to wonder if there will be major safe haven buying once we reach and pass the deadline. The govt. only has about 30 billion dollars to work with if this happens to pay certain things off, one being social security, and they say that the 30 billion would not even last 2 weeks.

So with everything I just stated, what do you all feel is going to happen with the gold and silver markets. Remember, this country has never been in this situation before with defaulting on their debts. This could get really ugly.

 

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http://www.reuters.com/article/2013/10/16/markets-precious-idUSL3N0I61TL20131016

http://www.cnn.com/2013/10/16/politics/shutdown-showdown/index.html?hpt=hp_t1

http://money.msn.com/business-news/article.aspx?feed=AP&date=20131015&id=17001270&ocid=ansmony11

 

we are not close to defaulting on our bills. Even if they don't raise the debt ceiling, there is enough money coming in to pay our debt obligations. The only way we default is if the president decides to not pay them. I don't think he want's to have that as his legacy.

 

Read the articles above, I think this is bigger then you just made this out to be. In the big scheme of things, 30 billion for a country really is not a lot of money when it comes to paying out over a couple of weeks.

 

I am a Canuck so I probably don't know U.S politic much. But that being said, I doubted that neither party want to be blame for this screw up. I think either side will blink todayor tomorrow. I am betting the republican will blink first. As for PM, I think it will flutuate base on how it turn out but it will come back down to earth once the situation resolve

 

I dont need to read the articles, there is no reason we should default. We take in close to 200 billion a month, and are debt payments are 20 billion.

 

I'm not from or in the US either, but the critical point is not today or tomorrow, I think, but the end of the month. (Oh, and thanks for not turning this into a political debate. )

Christian

 

Precious metals may go up or down. I better buy and sell 100oz. today just to cover my basis.

 

This is one of those threads that could easily slip into the realm of political argument.

Be careful people.

 

More than one commentator seems to indicate the nice government men are holding the spot prices down by manipulation. This is nothing new.

 

Once a week, almost like clock work, someone posts a thread asking what everyone thinks will happen to the price of precious metals. Every one of those threads turns into a political argument. Will this one be different? I feel confident answering 'no'. I'll be watching to see how long this one lasts before being locked.

 

In this case, I think this will be locked within the hour because someone won't stay on topic. Lets all try to stick with the original comments and be constructive with our answers in reference to gold and silver and not how we feel about our govt.

 

I think the gold and silver market has been on a slow decline with slight up ticks throughout the last month, and I feel that most people are anxious to see how and if this issue will effect our economy. That is why I ask if the silver and gold market will rise or fall, because as a country we have never had a issue of this nature.

 

The country has gone through this 17 times. This is nothing new.

 

We as a country have defaulted on paying our debt 17 times? Can you post where it says that so I can see for myself please?

 

I believe that its shocking to some PM people, (not saying anyone here), why PM has not skyrocketed during this issue. To me, cash is king in such times. Look at 2008/2009. PM tanked along with most other investments. When there is major movements in markets, and major uncertainty, having your money in cash is the best place to be for many reasons; you will not lose money, you are liquid, and you are in a position to take advantage of opportunities as they arise.

Being invested in PM is not liquid. So, if the crisis worstens, I fully expect PM to take a hit as people sell. I would wager its not the predominate thinking amongst PM investors.

 

The US has defaulted at least twice. Once after the war of 1812 and again in 1979. We're still in business with a AAA credit rating. Again, default is nothing new here.

 

The country will not default and the debt ceiling will be raised. Don't despair, there will be another crisis soon to captivate our attention.

The funny thing I have found out about being a long term PM investor is that any news is good news for precious metals.

 

The US has had 17 government shutdowns. There is no way we will default. simple math. we take in 200 billion a month, and our debt obligations are 20 billion.

 

Here are just two. There are many more. They are easy to find on Google or Bing.

http://www.usatoday.com/story/theov...lt-associated-press-1979-war-of-1812/2979497/

http://www.zerohedge.com/contributed/2013-10-14/us-has-repeatedly-defaulted