Opposites Attract – The Dollar Crash

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The Telegraph – Dollar Smashes through resistance as mega-rally gathers pace: 11/3/14

“Hans Redeker, from Morgan Stanley, said the dollar rally is almost unstoppable at this stage given the roaring US recovery, and the stark contrast between a hawkish Fed and the prospect of monetary stimulus for years to come in Europe.”

After reading that, I think I just threw up in my mouth a little bit…honestly.

If you’re like me, and you see economic turmoil on the horizon, you’ve probably invested in hard assets to weather the storm.  Among that, silver and gold seem to be attractive assets that are within our reach as opposed to real estate and land purchases that the big boys are buying up.  However, during the 2014 spring through fall, we’ve seen the price of these metals plummet.

gold and silver price drop

We are continually told by fellow members of the preparedness community to “Hold Firm!” or “We’ve made the right choice, don’t back down!”  But everyone has to admit, we are licking our wounds from the current loss of purchasing power we’ve experienced.  With these price drops, I’ve been telling myself – “I could have gotten an additional XX number of silver eagles if I would have held off purchasing until now.”

This is all true, but no one can time the future perfectly.  If anything, we must go by the guidance of George Santayana…

“Those who do not remember the past are condemned to repeat it.”

Remember the “Roaring 20’s”?

During the 20’s, there was a period of massive economic growth.  Wages of workers increased, stock prices soared, and life was good.  By 1929, this all ended horribly and we went into the Great Depression.

Remember the Housing Boom?

Do you remember how mainstream news and reality TV promoted the housing boom (bubble)?  There were tons of shows on how to get rich quick by “flipping homes”.   Even Helicopter Ben Bernanke said he did not think the national housing boom is a bubble that is about to burst as he testified before congress.  We all know how that ended…

And there are several other faux booms/bubbles that we were made to believe like the dot-com bubble.

The Real Story…

All across America, families are hurting.  We know that wages are down, unemployment is up, full time jobs are replaced by part time jobs, etc.  Wall street is celebrating while main street is struggling.

I can personally attest this as I work for a fortune 500 company that is experiencing this duality.  Our stock is soaring, but we’ve gone through at least a 16% reduction in staff.  Our wages do not cover the increase in inflation, and our health care costs are rising.  But fear not, the US economy is….how did Morgan Stanley put it?  In a roaring recovery…

If we could all predict the future, we would be wall street insiders buying up gold and silver when the price was at a confirmed bottom.  But that is a game for gamblers and not honest hard working people.  Although you’ve heard the message before, hold fast to your gold, silver and other hard assets that you’ve acquired.  Don’t allow this temporary boom/bubble in the economy put you down.  For if history repeats itself again, we are ever nearing the collapse of this monstrosity of a system that enslaves our people.

  • GenEarly

    Silver especially is a bargain, retail cost is below mining cost, and physical sales of coins/bars at high volume. Silver mining doesn’t keep up with physical demand and silver mines consider shutting down or holding their inventory. The markets are gyrating……..logic and production are absent, no steak, all sizzle.

    • Definitely a bargain! I wish I would have put in my purchases right around now. I still would like to purchase at these amazing prices, but it’s always a balance between holding gold/silver and actual “preps”.