Post by
Observator on Nov 11, 2021 3:03am
Share price seems to correlate with rising silverprice
Good morning.
Third quarter report is still outstanding. Yesterdays rise in the shareprice was from my point of view due to the rising silver price, which has currently neared 25 US-$ per ounce.
As commented before...more and more it will be clear, that overdebted countries like the US can loose their government debt only via high inflation. All other strategies would lead to a collapse of the world economy.
Destroying the purchase power of bondholders and savers is indeed a bad thing, but not more than "collateral damage" in the current situation.
Currently the US is paying yearly 550 billion US-$ interest on its debt burden of 30 trillion US-$. More than half of the debt is short-term debt maturing in the next 3 years.
The average rate is 1.7 %. Now everyone of us can calculate what it would mean, if FED would hike aggressively. Every 1 % higher interest rate means 300 billion US-$ plus of interest expenses. Therefore interest hikes which would damage the economy i.e. the financing of the US government debt is unlikely.
Most probably is, that high inflation rates will be "unofficially" allowed. And this will lead to generally higher prices and of course also wages. Gold and Silver will profit from that on the long run.
And producers of Gold and Silver should also. But lets see in the future....time goes by.
A nice and successful day to you.
With best regards.
Comment by
Shermandrock1 on Nov 11, 2021 9:07am
Yep Observator, you are spot on with your debt observation. The "system" of fiat money is broken. Has been since Nixon. Only realized by some. Soon all. Metals will once again become the backbone of value. Buy and hold.