What has happened to our capital markets? by Rob Kirby of Kirby Analytics via Goldseek What has happened to our capital markets? The reactions to the onset of a global pandemic […]
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The Dollar Index is now facing some significant resistance in the 99-100 zone.
If the buck turns lower from here, that should help hard asset prices continue to recover from their coronavirus lows.
If the USD continues powering higher in the days ahead, that would suggest investors remain nervous about the geopolitical and economic fallout from the China virus. Such fears usually imply selling in stock markets and industrial commodities – and potentially some safe-haven buying of gold.
The yellow metal appears likely to challenge the $1,600/oz. level again very soon. A break above it would establish new 7-year highs. Longer-term, bulls will be eying $1,900/oz – gold’s all-time high from 2011.
Silver is much further away from its former all-time highs. But when silver runs, it can run much faster than gold.
The first psychologically significant breakout point for silver would be at the $20/oz level.
As metals analyst David Smith explained during the most recent Money Metals podcast, “Technically, on the upside you’ve got resistance at $18, $19 and $20. And that could even take a while to get through or it could just cut through it like a knife through butter. But that will tell you something, if it does. I think the real realization is going to start dawning on people when silver gets above $20 and stays there for a few days… You really don’t have too much resistance between $20 and $26. And I think it’s very possible that by the end of this year, silver will challenge $26.”
Washington also spoke of the evils of unbacked paper currency.
In a 1786 letter to Thomas Jefferson, Washington wrote, “Paper money has had the effect in your state that it will ever have, to ruin commerce, oppress the honest, and open the door to every species of fraud and injustice.”
And in a 1787 letter to Jabez Bowen, Washington stated, “If in the pursuit of the means we should unfortunately stumble again on unfunded paper money or any similar species of fraud, we shall assuredly give a fatal stab to our national credit in its infancy. Paper money will invariably operate in the body of politics as spirit liquors on the human body.”
George Washington would undoubtedly be horrified by the economic and political power wielded today by the currency-creating cartel known as the Federal Reserve.
The Fed has rendered our financial markets entirely dependent on fiat currency infusions by the trillions. And it has enabled our elected officials to spend and borrow like drunken sailors with no sense of responsibility – because they can always get the Fed to paper over their excesses.
One way sound money advocates can honor America’s first (and arguably greatest) President is through the America the Beautiful series of 5-ounce silver coins. Yes, at five full ounces, these coins make quite an impression.
The America the Beautiful series features 56 hefty 5-oz silver coins. The obverse carries the familiar portrait of George Washington featured on current Washington quarters but greatly enlarged with stunning detail.
The coin’s reverse (or tails) side features a national park or historical site. The list of sites to adorn the 56 coins were chosen in a process which included state governors, the U.S. Interior Department, the Secretary of the Treasury, the U.S. Commission of Fine Arts and the Citizens Coinage Advisory Committee.
The first coin in the series, honoring Hot Springs National Park in Arkansas, was issued in 2010. Four additional coins followed with the same 2010 date. Each year thereafter, five new designs have been released.
These massive 5-ounce coins will be a remarkable addition to any silver holding. And, because they can be purchased without paying high collectible premiums, they also make great investments.
