Us is downgraded to aa+

One thing to keep in mind is that gold and silver are very volitile, and very speculative at current prices compared to a decade ago. In the meantime, the stock market hasn't gone anywhere since the late 90s and bonds don't yield much either. So you are probably doing better than you think. You should probably keep doing what you are doing. Switching from a lower priced asset class into a higher priced asset class is the sort of mistake that can really set you back. In my opinion, the next 10 years will be better for conventional investments than the last 10. Good luck.

 

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I think the Asian market is going to send a message Sunday night.....gold up $23+, silver $2+. I think We can expect to see a little more profit taking from the rest of the markets later on regarding the PMs, but not too much.

Either way this is not as big of a deal as some would have Us believe. I`m not by any means saying this is good, but there are other countries that have the AA rating and yet have slightly lower interest rates than the U.S. does.

 

I think one of the most important things is to recognize that one philosophy is superior to another -- that a philosophy of personal freedom is superior to a philosophy of collectivism even if collectivism produces more financial stability. If people would forget the politics and focus on the philosophy we'd all be better off.

 

Thanks! ...I'll check them out. :thumb:

 

not to argue with you cause I'm not really into politics...I hate all the "making sausage" cloak and dagger crud of it...
but also...as long as monetary policy and politics are basically one and the same... and since pm's are based on "value" of fiat currency with inflation or deflation going up and down moving the pm market...I don't really see any way one can just ignore politics or try to separate it from the effects it does and always has on pm's....

 

The downgrade seems a bit unjustified when you take into consideration that France is still AAA rated despite having a higher debt per capita ratio than the United States. Does anyone really believe French bonds are safer than U.S. bonds? Regardless, the cost of borrowing for our government and its citizens is going up.

 

I do not think there is any question that gold will rise and the stockmarket will fall on Monday. But the risk of the credit downgrade has probably already been factored into the markets to some degree.

 

Goes to show how very seedy the credit rating agencies are. I'm of a mind to think that this is intended and that protests are more of a show for the little people. Maybe the fed wants an easy way to get rates moving up again without being the direct cause? Personally, the rate squeeze on savers needs to end...that or the inflationary policies which devalue money needs to end...bring on the 'feared' 10% rates so my money can go back to work!

 

They have now said from what i understand is that theat shouldnt change the outcome we still need to get our problems solved if they were to change it we would go on like business as usual

 

No worries...the BBA will return us to AAA.

 

Every part of my being says this 'should' cause PM's to go up, but there is the lingering feeling that the paper market will be driven down along with the tide. I did lock in a small purchase today to get some silver coins I didn't have just in case the supply gets drained if we do get lower prices (10 days before delivery process begins). I would not be surprised to see a better dip, but I'm not going to base my decisions on the expectation of that either. This is very bullish for metals fundamentally.

I doubt France has long before they join us. New Zealand bonds are a lot safer than both and they only have an AA+ rating. Cost of borrowing is going up indeed, and that doesn't help deter future downgrades any. This is where the downgrade could potentially be seen as a big deal, if it causes a vicious cycle, rather than in and of itself.

 

France is an over-graded low end 65 and USA and NZ are high end 64 with a green bean.

 

Of course the downgrade was justifiable, considering our country's spending habits of the past couple of decades. The stock market will take a hit, because "the sky is falling" according to the day traders on Wall Street. Greece is on the verge of bancruptcy: stocks tumble. The monthly jobs report comes out: stocks take another tumble. Tom Hanks has the flu: stocks tumble. You could manufacture any news headline (true or not), and probably affect the Dow somehow or another.

 

Just like I thought .This is a great year for investing in PM .Silver shold hit 50 Oz by the end of the year.

 

Best wishes for eveyones sucess in investing.

 

I wonder how the FOREX is going to take this news? We'll see soon enough.

 

I wish the physical pm would drop but i have a feeling they are going to go up in a few hours when the asian markets open

If the physical stuff would drop into the low 20s i would definatly liquidated some of my paper holdings and buy some more silver and gold

 

If silver moves as low as the low 20s or lower, it probably means that the bull market is over and the next big rise will occur around 2040 or so.

 

I think we'll look back on this period of historically low interest rates as a really good selling opportunity.

Btw, These grading companies are worthless (imo). They should have dropped our credit rating once they discovered we were selling junk securities around the world as government sponsored AAA securities.