Silver Prices Seem Oblivious To Impending Currency Crisis & Traumatic International Financial Crash

Several key events have a tendency to provide intuitively positive news for the precious metals. Included in this is the release of the FOMC minutes, speeches by Fed Chairman Ben Bernanke, Presidential press conferences, and also the various...
By: Franklin P. Whitman
 
NEW YORK - April 2, 2013 - PRLog -- Is the silver market already pricing in the coming financial fall? Experts do not believe this is so. Marketplaces dominated by the impulses associated with real people largely no longer can be found. The machines have taken over, because bots read the news as well as respond rapidly with big transactions. Regardless of how volatile global markets will get, remember that you will see more Cyprus-type events, more quantitative easing programs, more returns of the importance of inflation, more threats through central banks to remove assets, more mining sector failures as well as more bubble callers designed to impact mainstream investor thoughts and opinions. How high will silver go? Learn more >> http://www.silverpricestoday.cc/

Prices with regard to physical precious metals still shift based on the COMEX commodity price action. If silver futures increase, physical prices go up, and if futures drop, physical prices drop. Additionally, just like always, silver’s price motion typically depends on the actual monthly event cycle.

For instance, trading in silver is always heavy round the COMEX options expiration dates, because professional option traders positively rebalance their portfolios to remain delta neutral.

In addition, several key events have a tendency to provide intuitively positive news for the precious metals. Included in this is the release of the FOMC minutes, speeches or even testimony by Fed Chairman Ben Bernanke, Presidential press conferences, and also the various jobs reports that are dominated by the non-farm payrolls information release.

Hedge funds have decreased long silver exposures and appear to be maintaining a short prejudice. Commercial shorts have reduced their own net positions. Gold Coins, Learn more >> http://www.silverpricestoday.cc/GOLD-COINS/

In general, it seems that the actual silver market has reached a probable bottom for now. This has absolutely nothing to do with deflation, inflation, bond marketplaces or currencies. It is rather all about the paper trade. Financial systems tend to naturally go through intervals of deflation and inflation because they weaken and then strengthen. Long-term silver traders should beware of the futility of focusing on this particular cycle to forecast interest in silver.

U.S. government spending budget deficits are running $1.2 trillion per year, as well as unfunded liabilities are increasing from rate of $6.9 trillion the year. In just a few years, the Medicare system is going to be bankrupt, thereby adding another $1 trillion per year to this deficit. Budget loss will only expand from here.

The actual deflationist’s theory has long been that when pressed into a corner, the political figures will make the tough choices as well as implement the necessary budgetary slashes, but they will not.

The deflation debate might seem appropriate until the day that the inflationists are proven right, and the entire thing spirals out of control in the blink of the eye. This traumatic occasion will most likely take the form of the currency crisis and a worldwide crash in the U.S. Treasury marketplace.

Industrial demand for silver could decrease in future as less expensive replacements like Graphene are found. Nonetheless, if that happens, the persistently undervalued silver market would probably proceed right back to focusing on the conflicting problem of this mountain of remarkable sovereign debt.

In a weak economy, individuals start questioning the creditworthiness of those that have obtained existing loans they may not be able to repay.

The global economic climate will eventually experience the same kind of severe financial catastrophe that the United States experienced in 2008, in which many banking institutions would have failed had the U.S. government not stepped in with truckloads of printed bailout money. Federal government intervention in businesses seems to have right now become a regular occurrence.

Keep in mind, silver is just a commodity until the day that the increasingly tenuous paper currency based financial system lastly unravels. Then it'll once again become hard money, as well as investors who want to preserve a minimum of some of their wealth through such a turmoil will wish they possessed it. Analysts and experts recommend buying silver as a safe haven. How high will silver go? Learn more >> http://silverpricestoday.cc/
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Source:Franklin P. Whitman
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