There's More Upside To Silver Than Many People Realize!!
What is the fed going to do? What are they going to say about interest rates, inflation & tapering? All of those things in the mix, here are my thoughts on sorting out those things:
Well, I think you look at what the fed has to do and what the impact of that will be over time it seems to me that the fed would like to let interest rates rise a little bit, they'd like to do it so that they have a tool where they can lower them if they need to again. but it's tough to lower them below zero it's also tough to let them rise I know that most audiences in here prefer narrative to arithmetic but I'm going to give them some arithmetic anyway if as is true the u.s 10-year treasury yields 1.5 percent if you go back over the last 40 years traditionally the u.s 10-year treasury has had a positive yield over the rate of inflation if the rate of inflation is 6.5 percent then if the treasury yield was to revert to mean the u.s 10-year treasury would be selling with a seven handle or a seven and a half handle which means that the debt service cost throughout society but particularly to the government would go up fourfold. I don't think they can do it but again it gets worse traditionally the 30-year mortgage rate in the U.S, the rate that American homeowners pay to borrow money to buy a house. trades at a premium to the u.s 10-year treasury. if the u.s 10-year treasury rate was at seven the first mortgage rate would be about eight and a quarter as opposed to three that would give you affordable housing. the old-fashioned way which is to say that the price or the affordability of houses would fall so much as a consequence of interest rates that the real estate market would get crushed. am I saying this is going to happen no, what I'm saying is that it is unlikely that the fed is going to be able to let interest rates rise to any substantial degree which means that the set of circumstances, that's in front of us unfortunately very probably favors gold and silver for a fairly substantial period of time. do I know what's going to happen a month from now? No. Do I know what's going to happen 12-24 months from now? Well yes, you are going to see silver at $52 in 1 to 2 years from now.
As a matter of fact, every precious metal bull market lasted at least 10 years before declining, we're now probably got underway in 2018 for gold and 2020 for Silver so we're three years into a bull market for gold and only around 2 years for silver. once gold has established the momentum and the narrative around precious metals becomes more understood and accepted by the market and the investors and speculators come into the market which is to say a real silver squeeze is definitely inevitable.
Keep in mind this is not financial advice but only my personal point of view. hope you enjoyed it, please forget not about your precious comments and likes to help the algorithm of Tradingview.
Regards:
Precious metal investor and speculator
Well, I think you look at what the fed has to do and what the impact of that will be over time it seems to me that the fed would like to let interest rates rise a little bit, they'd like to do it so that they have a tool where they can lower them if they need to again. but it's tough to lower them below zero it's also tough to let them rise I know that most audiences in here prefer narrative to arithmetic but I'm going to give them some arithmetic anyway if as is true the u.s 10-year treasury yields 1.5 percent if you go back over the last 40 years traditionally the u.s 10-year treasury has had a positive yield over the rate of inflation if the rate of inflation is 6.5 percent then if the treasury yield was to revert to mean the u.s 10-year treasury would be selling with a seven handle or a seven and a half handle which means that the debt service cost throughout society but particularly to the government would go up fourfold. I don't think they can do it but again it gets worse traditionally the 30-year mortgage rate in the U.S, the rate that American homeowners pay to borrow money to buy a house. trades at a premium to the u.s 10-year treasury. if the u.s 10-year treasury rate was at seven the first mortgage rate would be about eight and a quarter as opposed to three that would give you affordable housing. the old-fashioned way which is to say that the price or the affordability of houses would fall so much as a consequence of interest rates that the real estate market would get crushed. am I saying this is going to happen no, what I'm saying is that it is unlikely that the fed is going to be able to let interest rates rise to any substantial degree which means that the set of circumstances, that's in front of us unfortunately very probably favors gold and silver for a fairly substantial period of time. do I know what's going to happen a month from now? No. Do I know what's going to happen 12-24 months from now? Well yes, you are going to see silver at $52 in 1 to 2 years from now.
As a matter of fact, every precious metal bull market lasted at least 10 years before declining, we're now probably got underway in 2018 for gold and 2020 for Silver so we're three years into a bull market for gold and only around 2 years for silver. once gold has established the momentum and the narrative around precious metals becomes more understood and accepted by the market and the investors and speculators come into the market which is to say a real silver squeeze is definitely inevitable.
Keep in mind this is not financial advice but only my personal point of view. hope you enjoyed it, please forget not about your precious comments and likes to help the algorithm of Tradingview.
Regards:
Precious metal investor and speculator
Comment:
Lower time frame updates
Comment:
A little bit more downside before going up.
Comment:
Remember the magic number of 52.
So we cut it and half people . I'm out have a nice weekend.
P.S : for a limited time I offer my methodology in a comprehensive course only for $100. Feel free to inbox me about that
So we cut it and half people . I'm out have a nice weekend.
P.S : for a limited time I offer my methodology in a comprehensive course only for $100. Feel free to inbox me about that
Comment:
Comment:
Longer term trader can hold , short term more down side is expected . I wouldn't be surprised seeing this at 21. Dxy is so strong
