jim4silver
Silver Member
- Apr 15, 2008
- 3,662
- 495
I recently picked up some Rhodium one ounce bars to diversify my PM holdings. I hope it spikes back up to over $10K per ounce like it did in 2008, but I don't count on it. Really is more of a long term holding. The metal itself is more rare than platinum and is used in catalytic converters and other industrial applications.
I would buy some palladium and platinum but don't have enough extra $$$$ in that I am still more bullish on silver than any of the other metals and will keep buying under $35 per ounce.
The "good" part of the election outcome for PM holders is that QE will continue (from what the Fed chairman and prez have said). I believe you will see Operation Twist extended when it ends in December this year. This is in addition to QE3 which was announced a couple of months ago.
The national debt ceiling is about to be reached and will be raised before the end of the year. Probably will push it up to $17.5 Trillion if they do what they did last time. Remember that our annual budget deficits have exceeded one Trillion per year over the past 4 years. I don't believe this trend is going to end anytime soon.
This is bullish for PMs in that such QE is seen as inflationary. Any proposed tax increases will be useless to pay down the debt as long as they keep spending like they have been doing over the past 12 years.
A recent sign that PMs are holding firm and looking to go up is that fact that even though the dollar has been showing strength in the past weeks, PM prices have not fallen. Normally, such dollar advances would have sent PMs correcting in a large way, but it has not happened that way recently. Over the past 10+ years of this PM bull market, when the PMs start moving in the same direction as the dollar (up that is) it has usually been a sign that PMs were strengthening and about to start another up phase.
I sure hope all the PM bears/agnostics that have come here in recent weeks will be man/woman enough to admit they were wrong if/when we hit/break through $50 barrier
. Most of the past bears we have had on this site seem to disappear once the prices rally up and they are not heard from again. I am making reference to the couple of posters who kept saying silver was going to $20 or below when it was stuck in the high $20's range.
All just my opinion.
Jim
I would buy some palladium and platinum but don't have enough extra $$$$ in that I am still more bullish on silver than any of the other metals and will keep buying under $35 per ounce.
The "good" part of the election outcome for PM holders is that QE will continue (from what the Fed chairman and prez have said). I believe you will see Operation Twist extended when it ends in December this year. This is in addition to QE3 which was announced a couple of months ago.
The national debt ceiling is about to be reached and will be raised before the end of the year. Probably will push it up to $17.5 Trillion if they do what they did last time. Remember that our annual budget deficits have exceeded one Trillion per year over the past 4 years. I don't believe this trend is going to end anytime soon.
This is bullish for PMs in that such QE is seen as inflationary. Any proposed tax increases will be useless to pay down the debt as long as they keep spending like they have been doing over the past 12 years.
A recent sign that PMs are holding firm and looking to go up is that fact that even though the dollar has been showing strength in the past weeks, PM prices have not fallen. Normally, such dollar advances would have sent PMs correcting in a large way, but it has not happened that way recently. Over the past 10+ years of this PM bull market, when the PMs start moving in the same direction as the dollar (up that is) it has usually been a sign that PMs were strengthening and about to start another up phase.
I sure hope all the PM bears/agnostics that have come here in recent weeks will be man/woman enough to admit they were wrong if/when we hit/break through $50 barrier
. Most of the past bears we have had on this site seem to disappear once the prices rally up and they are not heard from again. I am making reference to the couple of posters who kept saying silver was going to $20 or below when it was stuck in the high $20's range. All just my opinion.
Jim
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