Precious Metals

Discussion in 'Bullion Investing' started by CHARLES GINETTO, Jul 27, 2022.

  1. CHARLES GINETTO

    CHARLES GINETTO Active Member

    Why are they decreasing in value when the dollar's purchasing power has gone through the floor?
     
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  3. Collecting Nut

    Collecting Nut Borderline Hoarder

    The dollar has risen and is still rising in today’s world. It gains strength against all foreign money. Precious metals are also being controlled by governments but they can’t keep doing what they are doing so just hang in there.
     
    Kurisu likes this.
  4. longnine009

    longnine009 Darwin has to eat too. Supporter

    Countries who floated loans denominated in USD have to buy dollars to service their loans putting more price pressure on the dollar.

    Capital has been leaving the Euro and going into the USD for years now. I'm guessing the pace has picked a lot, for reasons I'm sure we can't discuss.
     
  5. Collecting Nut

    Collecting Nut Borderline Hoarder

    The weakening euro has been getting closer to parity with the U.S. dollar since mid-2021. A very robust June jobs report on Friday, and analysts' expectations of a further 0.75 percentage point hike by the Federal Reserve this month are making the dollar stronger than expected.

    From USA Today:
    For the first time in 20 years, the U.S. dollar is nearly equal in value to the euro.
    While that may sound good for the dollar, it could be a double-edged sword.
    Why? If the dollar becomes too strong, it could harm business for American companies, because their goods may become more expensive for foreign buyers. And if sales of U.S. exports decrease, that could further slow down an already stalled U.S. economy.

    The dollar is strong right now for a few reasons. After years of easy money, the Federal Reserve is raising interest rates. “We saw this back post-great financial crisis and we're seeing this now as we move past the pandemic,” according to Win Thin, global head of currency strategy at Brown Brothers Harriman.
     
  6. Clawcoins

    Clawcoins Damaging Coins Daily

    The US Dollar is not limited by the boundaries of the United States.
    Precious Metals are not pegged to the US Dollar.
    Precious Metals are not a US only traded item.
    Are precious metals solely mined and processed in the US ?
    That is what people need to understand.

    Many transactions around the globe are done in US Dollars - oil, gas, other global trade / commerce from around the globe and a Global Reserve Currency (foreign banks store tons of it).

    In short, any time there is a "problem" in the US it probably is a Global Problem.
    Oil/Gas Prices ... global
    Inflation ... global
    price of Silver / Gold ... one reason it's traded in Hong Kong, Sydney, US, London etc; not just and only the US.

    I'm not sure if the US ever sold Gold Reserves?? if they have you would think it would go to the highest bidder .. in the US or not.

    So (using oil instead) when the US Sold Oil Reserves it was sold to the highest bidder so the US gov't can recoup as much USD as possible, as US law requires.

    Of course, that company or country could keep it in the US or move it to process it and send it back or send elsewhere (since US refineries are 93% of full capacity anyways and can't handle more). Oil is one of those global commodities so you want to increase global supply, not local supply. If the US based Oil Companies/stations were wholly owned by the US gov't then they could control US supply/demand and price. But imagine if foreign oil was less $ then National US oil .. what then ?? But even US based oil production companies sell to the highest bidder.

    https://www.cfr.org/backgrounder/dollar-worlds-currency

    gotta love inflation (it's like for years salaries rose without consequence) .. wait? The US isn't the highest and only country with inflation ??
    https://www.pewresearch.org/fact-ta...e-world-inflation-is-high-and-getting-higher/
    upload_2022-7-27_21-55-51.png


    might be time to move to Mars
     
    slackaction1 likes this.
  7. -jeffB

    -jeffB Greshams LEO Supporter

    Yeah, I'm a little nervous about the dollar's strength against the pound and Euro -- I'm a US employee of a UK-based company, and this is making all of us here in the US more expensive relative to the home-office folks. And US developer salaries were already a lot higher than those in the UK.
     
  8. charley

    charley Well-Known Member

    I will take this opportunity to modify your thoughts a bit, and hope it doesn't offend:

    Countries who floated Loans not denominated in U.S. Dollars have to buy U.S. Dollars to service their loans, putting less pressure on the U.S. Dollar.

    PS: This is the greatest monetary weapon the U.S. has, to defeat the Russian Rouble (.016310 per U.S. Dollar) and the CNY-Chinese Yuan (0.14849 per U.S. Dollar), and both of these countries use this weapon in reverse, and blackmail the borrower by demanding re-payments and default fees be paid in U.S. Dollars. Africa-we hardly knew ya......
     
    longnine009 likes this.
  9. charley

    charley Well-Known Member

    Taxes, takes, taxes. Pay the UK Rate to the U.S. Govt. How would your monetary position improve?
     
  10. -jeffB

    -jeffB Greshams LEO Supporter

    Oh, I'm not wishing for things to be different, don't worry. It's just a pain in the butt switching jobs, and it doesn't get any easier as you get older.

    I'm feeling no temptation whatsoever to emigrate.
     
    slackaction1 likes this.
  11. longnine009

    longnine009 Darwin has to eat too. Supporter

    China will do all it can to own Africa. Too much mineral wealth there especially cobalt in the Congo.

    Johnny We Hardly Knew Ye was a pretty good book.
     
    Last edited: Jul 29, 2022
    slackaction1 likes this.
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