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<p>[QUOTE=&quot;InfleXion, post: 2056613, member: 29012&quot;]There is a lot of talk here about the bull market being over. Silver and gold are both up 300% since the bull market began. But who thought we&#039;d see $50 oil again? Not me. Is the oil bull market over too then? It&#039;s hard to see that being the case with oil dependency still going strong. The Saudis are just trying to undermine shale oil and the Keystone Pipeline in an attempt to maintain market dominance. These are waves, short term volatility, not the tide.</p><p><br /></p><p>Funny thing, I haven&#039;t been on forever because I thought I was banned. It turns out my browser was just outdated!</p><p><br /></p><p>I&#039;m still doing dollar cost averaging, and haven&#039;t sold any of my metal. Been doing that since 2008 and my average price spent is just over $20/oz for silver, but I&#039;ve got plenty of coins that will sell for double or triple that, and I could definitely get my money back if I wanted to. There&#039;s a big difference between an IOU that says you own silver, and actually having a shiny element that you can feel the weight of in the palm of your hand with a great design on it. Most people only care about money though, and you have to be able to see the true value of precious metals to know that they are a steal, at any price denominated in a currency backed by broken promises.</p><p><br /></p><p>I&#039;ve also been getting more diversified.. platinum, palladium, plenty of nickel (Canadian of course) and copper, and even a few gems. Call me crazy, but I even kept my 401K! Thankfully I am capable of living within my means and am in a position where I can choose my exit point, or can even choose not to exit. Let&#039;s flip the coin - I&#039;ve already exited my position. Society has thus far denominated my wealth in dollars, and has paid me as such for my services. By purchasing tangible assets I have divested out of something with no intrinsic value, and acquired something of real value. What I do now is look at all assets as their own currency, not whether I am invested in something. There is no escaping being invested save having nothing to call your own, so I see no need to have an exit point or an entry point. It&#039;s simply a matter of what a person wants, and in my case trust factor is the most important consideration.</p><p><br /></p><p>So, is it time to buy to precious metals? Putting aside that I believe it&#039;s always time to buy when you have a currency backed by trillions in debt that will never be repaid, anytime you can buy a non-renewable resource for the same price you could a few years ago amid an inflationary environment it&#039;s a good deal. Silver is still below cost of production thanks to it being mined as a byproduct. But aren&#039;t we now in a deflationary environment you say?</p><p><br /></p><p>The Fed says they&#039;re going to raise rates at some point, which would be deflationary if they raise them high enough, but zero % interest is still inflationary because it incentivizes money creation for the purpose of new loans and arbitrage on those rates by select banks with access to this free money. They did hold true to their pledge to taper, so you have to respect the possibility they will raise rates, but what exactly is tapering? It sounds like an action, but taken in context, it wasn&#039;t. It was a trend toward inaction away from the action of Quantitative Easing. Now that the &quot;action&quot; of tapering has completed, there is an inaction of QE. So what did they really do? Well they stopped manipulating markets with that particular mechanism for a few months. Look where that&#039;s gotten us? The deflation boogeyman is looming, and precious metals lead the charge like they always do. Once stocks follow, the safe bet in my book is that the Fed will cave to market demands and lose their credibility. Many of us know what happened in 2008 with Hank Paulson and Congress. The amount of leverage in the financial system exceeds what it did back then when everyone should have learned their lesson. This is a bit of a lose-lose for the Fed, as their credibility now depends on not printing more money to support the financial system. Which is more important? Obviously their credibility would take a back seat when push comes to shove.</p><p><br /></p><p>Let&#039;s say for the sake of objectivity that we are neither in an inflationary or a deflationary environment, and that markets are at a decision point. If this course continues, and the Fed does raise interest rates, and metals and commodities and equities enter a true bear market, and the already unserviceable debt burden becomes more expensive to pay off with higher interest, and the welfare state no longer has sufficient funds to support both the burdens of the populous and the financial system, do you really think you&#039;ll want to be holding paper in a default situation, or tangible assets? Alternatively, do you really think you&#039;ll want to be holding paper while the Fed prints it to infinity to sate the market monster? They are dancing the line the best they can, creating inflation when they have to, which in turn creates the feedback loop of deflationary pressure, and a vicious cycle they cannot stop but only hope to contain for as long as the mounting pressure allows. Central banks around the globe are doing this in tandem, and their capacity to extend an untenable situation has been surprisingly resilient, but the fact remains that an exponentially growing debt burden can never be alleviated in a world where growth is linear at best. There are two possible inevitabilities and numerous delay tactics to stave them off. I am thankful for the opportunity to be able to acquire things deemed as precious in exchange for something on borrowed time.[/QUOTE]</p><p><br /></p>

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