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Contributed Commentaries

Physical precious metals ARE money

Kitco Commentaries | Opinions, Ideas and Markets Talk

Featuring views and opinions written by market professionals, not staff journalists.

Commentaries & Views

Regular readers know that I purposefully differentiate between trading metals and stacking metals. I have been steadfast in my opinion that "trading is engaging in a series of battles but owning physical metal is the path to winning the war." If you haven't yet understood that world financial elites are actively engaged in relegating the middle class back down to a low-level living standard – I hope that the rock you're living under is soft and yellow.

  • Banks fail.

  • Governments and central banks employ mechanisms that control the value of your blood, sweat and tears.

  • World reserve currencies have failed throughout history - without exception.

There is much debate as to what actually is the most viable universal money today; in my opinion, this is still the wisest and most relevant piece of literature on the subject:

"No state shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility."

There has been a massive, massive plunge in the US 10 YR bond yield over the last few trading days – shown in the daily chart below. Would you believe there's not much faith in a hawkish Fed after one little bank run?

Although the Fed overnight rate may not go higher as the market anticipated just last week, I believe standing pat to maintain the current environment would continue to crush Main Street while big money moves, still relatively consequence-free. Case in point; the stock market is finding support at that crucial weekly trendline yet again (S&P 500 futures).

I remain a bull on high alert regarding the stock market. Taking out more insurance than is usually required to manage risk in your overall portfolio may not be a terrible idea here. I still believe weekly momentum will turn all the way to oversold and a test of the 200-week moving average will transpire.

I want to be ready for any downside follow-through, especially if the 10 YR yield finds strong support in the 3.3 to 3.45 area.

By

Jonathan Da Silva

Contributing to kitco.com

Contact jdasilva@kitco.com
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.