/biz/ - Business & Finance

I just bought a Victorian solid silver chalice on Ebay for below spot. My plan is to drink out of it daily at work, being careful of co-workers salty tears tarnishing the finish, whilst amending a spreadsheet of my silver stack gainz. I’m thinking this will be based.

>>15015574
View it like this. Your money in your account is depreciating as we speak. If your ‘lucky’ enough to have a 1% savings rate and inflation is at 2%, your $ will be outpaced by whatever a carton of milk or a loaf of bread is raised each year to.

In order to overcome this fact, you have to beat inflation. You can only do this by investing.

Timeline for brainlets

>T-Bills short term will go higher due to flight to US dollar for safety, until faith in the $ turns.
>PMs have already started their run, harder to find value now in funds like GDX and GDXJ, is look to physical ETFs of Platinum, Palladium, Silver and Uranium and big quality PM miners that have taken a recent hit like Fresnillo.
>Take profits, and reserve some liquidity
>Invest in already out of favour defensive, high dividend paying stocks (that give higher returns than inflation) that won’t be effected as badly in stock market crash/recession and how they’ve reacted historically.
>Think about what people do in recessions, how government reacts. People gamble (Playtech) people drink (Diageo) people smoke/vape/weed (Imperial/BAT). Governments spend on infrastructure (transportation), agriculture (potash/fertiliser - Mosaic/nutrigen) Energy (green energy - solar/wind bullish for silver too) military (Lockheed, Boeing, BAE) telecoms (Vodafone etc) pharmaceuticals (Astrazenica/Glaxo)
>FAANGs tank as the market tops off and QE has limited effect. Passive pension funds take a massive hit (muh retirement).
>BTC and PMs go to an ATH, sell and invest more in the above to gain enough to live of the dividends.

The yield curves tell you all you need to know.

FUD on here constantly spams that investing in stocks the last 100 years out paces PMs. That’s true, but we haven’t quite ever been in this position before, only the Great Depression of the 1920’s will come close. Trillions and trillions of global QE have been printed in the last decade, taking us further and further away from when the currency was gold backed.

All indicators are pointing to a global recession which means the ‘everything bubble’ (real estate, Dow, SP500, FAANGs) are going to blow.

The Fed announced it will reverse QT and start more QE and cut rates. Cue the Dow and SP500 reaching ATHs, this should send gold back down but it hasn’t.

The market knows this shit is baked in. PM miners are already off to the races, (look at Harmony, Sibanye) from where they were last year.

The reason why silver lags is because it’s mined as a byproduct alongside commercial metals. The moment the recession hits, commercial metal mining operations scale down. In turn silver will then pop and outpace gold. Silver is needed for green energy (cars, solar panels, electronics) even though ‘thrifting’ means the demand can be managed, it won’t stop silver being used as a store of value alongside gold when inflation goes through the roof in the next few years.

I don’t know why I bother explaining to Biztards, but I’ll do so again one more time.
A large proportion of silver is mined as a byproduct in large companies mining primarily for other industrial metals.
Once the global recession (and their is one coming) hits, demand for industry metals will disappear feom the likes of China etc.
Silver production then just falls to the PM miners. Price then skyrockets.
Silver is still be needed industrially too, and will continue to do so, as we move to green energy (solar panels, EV transportation etc) which will increase the price further still.
However many of these smaller mining firms will go bust, with the cost of extraction and restriction of cash flow through debt. As the Fed QE and inflation skyrockets, IRs will need to raise to save the dollar. After the last decade of low IRs, debt will become suddenly become very expensive.

>>14246667
Right Biztards, and you are financially retarded as you would know what a financial cycle is, how PMs (precious metals brainlets) react in correlation to a financial cycle.
You would have also been accumulating since the low at the end of 2018 and the low a few years before that and know the difference between physical, physical ETFs and PM miners both established and junior.
Now if you haven’t the first fucking clue in what I was talking about above, junior gold miners are not for you.
To work out if mining companies are going to make it or go bust, you have to consider the cost of extraction of the metal in the ground and how much there is. Company cash flow and debt. Exploration. Geopolitical climate (3rd world governments can change regulations on a whim) and currency.
If all that sounds like a ball ache in research then there’s a simple answer for you.
Put money into GDX and GDXJ. They are funds of established and junior miners which are managed for you.