Silver plunges 30% & gold tumbles as Warsh pick eases Fed independence fear

Go figure. Both were overpriced. Both are commodities used by industry.

The clueless only think about either as only for financial transactions.

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financial transactions.

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Both are commodities used by industry.

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Arent you missing the true source of value?

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Arent you missing the true source of value?

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Currently neither back anything. Main driver in price is the need in industry.

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Arent you missing the true source of value?

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Old school scrap metal yard owners used to put a $10 per hour guy to remove all of the controls from control cabinets from refineries and chemical plants, and fill 55 gal drums with them. Once a year they would ship off several truckloads of drums to a precious metals smelter. The smelter would get 50% of the gold and silver. The scrap yard owner would have his 50% delivered to a jeweler.

That is why old school scrap yard owners looked like Mr. T dripping with rings and chains. This was a secret savings account if they ever went bankrupt.

If not a commodity for industrial use, how the phuck where they able to obtain it in the first place.

Why not go big and buy Rhodium? It's worth a helluva lot more than gold.

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Arent you missing the true source of value?


Currently neither back anything. Main driver in price is the need in industry.

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More so with silver.

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Imagine if Congress did the prudent thing and passed a balanced budget amendment, what do you think would happen to PMs and crypto?
Are you saying they hold PM and Bitcoin?

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I have no idea what Congressional members hold as far as investments go, I know the biggest buyers of gold and PMs in general over the past 15 years has been Central Banks and institutional investors looking to hedge against a USD that's experienced severe debasement.

A balanced budget amendment would immediately strengthen the USD and US securities would be an attractive investment. These two things would cause the prices of PMs and crypto to fall as many use PMs and crypto as a hedge against the USD which is being debased.

Per Google AI.......,

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If a Balanced Budget Amendment (BBA) were enacted in the United States, mandating that federal spending cannot exceed revenue, the price of gold would likely experience significant downward pressure in the short-to-medium term, with potential long-term stabilization or devaluation depending on the broader economic reaction.

A BBA would effectively kill the "deficit-as-a-hedge" trade, which has historically fueled gold prices.

Here is a breakdown of what would likely happen to the price of gold:

Significant Short-Term Price Decrease: Gold prices have risen in tandem with expanding US budget deficits, as gold is used to hedge against the currency debasement that often accompanies deficit spending. By eliminating structural deficits, a BBA would strengthen the U.S. dollar, reducing the demand for gold as a "safe haven" against US fiscal irresponsibility, likely causing a drop in price.

Lowered Inflationary Expectations: Gold thrives on inflation, which is often driven by excessive government spending. A BBA, by forcing fiscal discipline, would likely reduce inflationary pressures. Less inflation means less demand for gold as a hedge, bringing down its value.

Higher Real Interest Rates: To enforce a balanced budget, the government might reduce borrowing, lowering the supply of bonds and potentially leading to higher interest rates. Since gold does not pay interest, higher real yields on bonds would make them more attractive than gold, driving investors away from the metal.

Reduced "Monetary Credibility" Fear: Gold currently acts as a safe-haven asset, reflecting a lack of confidence in central banks and government financial discipline. A BBA would, in theory, restore faith in the US dollar's long-term value, removing the fear factor that drives investors to hoard gold.

Potential Long-Term Paradox: While a BBA is generally bearish for gold, if the forced, sharp spending cuts caused a severe, immediate recession (as some economists fear), it could ironically spike demand for gold as a safe haven in the very short term.

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The Rich don't want the Poors getting rich.

I know and it pisses the hell out of myself and everyone I know. It must happen though!!

bummer