Silver, Gold, Copper, Wheat, Corn, Soybeans… Down

March 20, 2008 at 3:05 pm (Silver)

Ka-pow!  Commodities (real things you’d want to own in times of need) took another hit today.  Many people speculate why.  It’s strange how there is already a tendency to think we’re on the path of economic recovery.  Actually, I’d like to hope so because that would mean my house would stop dropping in value and almost anything I bought in the stock market would go up in value.  Not to mention prices would drop. 

But that’s just not the case.  Nothing has changed for the better.  All that happened was the Federal Reserve did some sleight-of-hand tricks.  That’s it, and that’s all.  But we have people saying things like “The dollar is strong. The other commodities are weak. That is putting downward pressure on gold.”  Strong?  I beg to differ.  How can the dollar go from weak to strong in a matter of days?  It’s barely moved.  Just because the dollar has temporarily stopped falling at freefall speed doesn’t make it strong.  It still takes $1.55 to buy one euro, and the euro is declining in strength too.

We’re not out of the clear yet.  We still live in recession land, with the wind blowing away our tent stakes and the rainclouds gathering above.  And all the wildlife has scampered off.  That’s why all these commodities will have to spring up again sometime next week (they’re closed here in the US tomorrow).  I’m not an economic know-it-all, and I would never give any advice to buy anything, but if I had any cash lying around, I would definitely snap up some silver since it’s dipped under $17 (if you can find it).  Or buy up some AMEX shares of iShares Silver Trust (SLV).  If you look at the drop in all commodities the only rational explanation is that people are so short in other investments, they have to keep throwing good money after bad.  At least, that’s what this person and this person seem to think.  Here are some other articles that are bullish on silver.

Today’s article of doom: Robotic soldier dog.

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