Spring Thaw

So with the dollar advancing, oil declining, and unemployment declining, gold & silver move forward on inflation fears. Obviously, with emerging economies creating more demand for commodities and other basic necessities of any given society, we face rising prices.

The government still bickering over a budget or facing a shutdown does not seem to faze much of anything. Would it make any huge difference if anyone was at the wheel anyway? I think the recent increase in economic indicators is a reflection of a more hands off policy and the economy working its own way out of recession. Too many people in the kitchen causes disarray in our system, much like the radioactive seawater pouring into the surrounding ecosystem in the pacific ocean, it is disruptive and chaotic, causing adverse reaction to any non ordinary action.

As for jobs, they may be at a barebones level, but that will remain. America no longer has qualified manufacturing or service. It is not that we cannot compete, it is that we choose not to. It has to come from the individual. Our education system is perhaps the single most important thing we neglect. Obama should have made his mark by reforming education, not healthcare. We really do not need more healthy people, no disregard for the unhealthy, but we really do need more intelligent people.

I think that Washington as a whole is a better scene now than 6 months ago. I think the economy is that much better too. I am hoping the republican party will back down more slightly and the democrats can reach out just a bit more, and come to a point of reconciliation. The public sector deserves a more functional system. For the average US Citizen, things are looking up. Jobs are beginning to recover. Health care is just around the corner, maybe. It is spring.

We still have to watch out for Oil & Food prices. Those two could cause a disruption in the recovery. We are not out of the woods yet. If inflation gets out of control, it can be the tipping point for many households. We are hearing less and less about mortgage woes and that is the best sign of recovery yet. Households are adjusting to joblessness and rising costs.

I think if I were at the wheel, I would be looking closely at alternative energy and looking at how we can begin the painful process of finding alternative ways to heat homes and provide electricity. The change should not always be focused on the automotive sector and lightbulbs. I think that getting homes off of oil and gas, and moving over to using sunlight, wind, and highly efficient pellet burning furnaces will provide a solid shift in our energy dependence. Maybe enough to keep oil prices within a tolerable range.

The second thing I would do perhaps is to try to regain some jobs by offering free training in what I see as attainable jobs. What I mean by this are jobs that people can be trained to do quickly and with a high rate of  success. Jobs such as website developers, factory workers, and clean energy products installation. If local colleges were to offer free courses for adults, then we can maybe expect to take some jobs back from overseas, and see a jump in homeowners using smaller wind turbines for electricity, solar panels, heating alternatives, etc. As for factory jobs, we need factories that are capable of producing smaller runs of various products. Versatile factories that can produce a variety of goods are better than ones that produce a single category of goods. I would attempt to reallocate funds that are normally given to the needy, and put them into an environment where they produce low-cost, high quality goods. It is better an option than our companies here going abroad to get an order completed within a budget. We are giving the money away anyhow. It just makes sense to me that it will encourage people to contribute.

With all that said, I think it just takes some creativity and some minor adjustment to get things back on track. I still see gold peaking at $1640. India demand is expected to remain significant despite the rising prices so if that is the case, we are good into next year. Sell every bit of gold you have at $1625, buy silver with your profits. Silver is long so hang in there.

I expect silver to be in the early stages of a long overdue bull run at market realized adjustment so look past 100 USD per ounce. With its many uses and short supply, it will be filling many safety deposit boxes for years to come, while industrial applications will depend on it for its versatile applications. Look at the relationship between platinum and palladium. While platinum backed off of its above 2000 USD highs, palladium slowly made its way to 800 USD as an alternative handy man metal special. Silver will do the same, and with renewed interest as an investment vehicle, it will give the $15o levels some testing, in my opinion. It is the alt metal for gold as a conductor, ornamental, and investment metal, so as gold is backing off, silver will continue to rise as demand peaks.

Enjoy the break in weather and for those heading off to vacation, R E L A X!!!

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About CT Gold Buyer
Owner of CT Gold Buyers in Wallingford, CT. and USA Gold Refiners.....

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