Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold and Silver - The Cure for Panic and Anxiety

Commodities / Gold and Silver 2011 Aug 26, 2011 - 05:08 AM GMT

By: George_Maniere

Commodities            There is something going on in the United States. I can’t quite put my finger on it but there seems to be a change in the attitude of the people. There is a pervasive sense of panic that has permeated every part of our society. I think that our citizens have come to the realization that we have come to a point that unless there are drastic actions taken by our leaders, our great nation is in for a systemic failure. I base this feeling I have on watching the tape and noticing a pattern of heavy selloffs, large purchases of gold and silver, a constant bombardment from the media that we are in serious trouble with the amount of debt we have amassed, growing unemployment, low wage menial jobs and big banks teetering on the brink. To emphasize my point on the banks we need look no further than Bank of America’s CEO Brian Moynihan saying that the bank was well capitalized and then selling Warren Buffet 5 billion dollars of preferred shares of stock.  “Something ain’t right in Kansas, Dorothy!”

           A pervasive feeling of doom has crept into the very fabric of our society. Worst of all our people have lost all respect for our leaders and have come to the realization that the partisanship that has taken hold of our government has made our representatives incapable of dealing with the mountain of problems that face our nation.

           While I feel that the average citizen (not my readers) is woefully incapable of grasping the insolvency that faces our nation. I think people innately sense that something is very wrong but are unable to articulate the problem and worse have no idea how to fix it. The sad fact is that our once great nation is moving into an unavoidable systemic failure.  Most people feel that our representatives and the banks have neither the will nor the solutions for dealing with the Armageddon that is facing our nation.

           Under the era of President Reagan we started the deregulation of the banks. This philosophy hit its crescendo under President Clinton who proclaimed that every American should own his or her own home. The realization of the American dream of home ownership, however was a ruse perpetrated by the greedy bankers to increase the annual bonuses. This was not capital creation – it was capital destruction. The apex of capital destruction has taken place over the last three or four years under the guise of quantitative easing. Credit dispensation and monetary growth (debasement) was doled out under the illusion of coming to grips with controlling the problem. This was a classic case of the tail wagging the dog. If you give a homeless person money, he will buy some coffee and a sandwich but not much more. I think this is a perfect analogy of how the middle class has been treated. They have been given just enough money to spend.

           The public has been told by the media that the cause of business’s lack of desire to spend and hire is the lack of confidence that has been shown as people would rather pay off their debt rather than go on a spending spree to Banana Republic. Sadly the true reason that businesses don’t spend on creating wealth and jobs is the broad deep insolvency and poor business risk which has emanated from the poor housing market, the failed banking sector and the woeful industrial base. 

           So what’s in store for tomorrow? Dr. Bernanke gives his speech at Jackson Hole and every talking head has a different spin but I am sure he will simply say that if and when stimulus measures are needed he I  is ready to step up. In other words he will say nothing. Gold and silver sure acted like that was what he intended to say today. It was only 3 short days ago that we were in fill blown correction mode.

While Gold hit an all time high on Tuesday, a fill blown correction lasted for two whole days as the gold ETF closed at $172.36 yesterday and silver also put in a  very strong showing. As it closed it staged a tremendous show of strength and closed up $1.28 at $40.00. PSLV closed up 3.45% at 19.17 and AGQ closed up 5.65% at 220.27or up $11.70. This does not feel like a sell off to me. I will stick to my guns and call for gold at$2,200.00 by January and silver at $55.00 - $60.00 with an outside chance we may see $100.00 silver.

In conclusion, I wanted to share something I learned. Yesterday, my brother and I had a conversation today and we came to the conclusion that silver was more like money than gold. While silver has always been called poor man’s gold, remember I have often written that I was a gold bug since I was 8 years old and since I am now 58 I had many years of going to the store for my mother with two quarters for milk and bread and yes - those quarters were silver. Neither my brother nor I could ever remember in our lives using gold as money but using silver as money was just a plain common occurrence. I am long GLD, IAU, PHYS, UGL, SLV, PSLV, and AGQ until I see a real sell off I will remain so. As long as there is runaway debt contagion and worthless paper money I will continue to hold my physical gold and silver ETF’s.

By George Maniere

In 2004, after retiring from a very successful building career, I became determined to learn all I could about the stock market. In 2009, I knew the market was seriously oversold and committed a serious amount of capital to the market. Needless to say things went quite nicely but I always remebered 2 important things. Hubris equals failure and the market can remain illogical longer than you can remain solvent. Please post all comments and questions. Please feel free to email me at I will respond.

© 2011 Copyright George Maniere - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in