The real drop. UVXY to $40?
Here we go. Massive volume!
Sentiment: Strong Buy
Besides, can you eat a stock certificate or $100 bill? No. So why are they valuable?
German bunds paying barely 0%? Tulips. 30 year USTs at 2.5%? Tulips. We will be reading about this in the distant future. How people were content with near zero rates on fiat currency paper. The real tulipomania.
Bryan is and was an underrated fellow. His aim was to help the common people against the 1% elites. His heart was in the right place.
Anyone buying 30 year U.S.T.s paying a paltry 2.5% is certifiably crazy. Even more crazy are those buying German bunds & Japanese paper barely above 0%. This is worse than the tulip mania.
I think Bryan handled himself well at the Scope's Trial against the wicked Darrow.
William Jennings Bryan is my man. The silver standard. "Thou shelt not crucify mankind on a cross of gold" etc.
No trendy, gold (and silver) is grossly undervalued with respect to all the paper & electronic currency that has been created by the CBs in recent years.
The gold to silver price ratio still sits near a record high, showing silver is undervalued relative to gold.
Sybil, 2000 pounds will allow you to sit in your vault like Scroodge McDuck and roll in the money.
This could be good, or bad. The good side may be relief for U.S. exporters. It will be bad if the trend continues or intensifies, with a rapid drop in the dollar. and there is a rush out of U.S. assets, especially bonds & stocks. If this happens, the precious metals will soar in value in dollar terms, of course.
You do realize that there is not enough gold to cover all the paper (and electronic) money that has been created without causing extreme deflation, don't you? Or would you set some high value on the gold--say 1 oz. backing $10,000 of paper? Because the relative scarcity of gold would require such a high rate.
i.e. a full return to the gold standard? Is that what you seek?
Tech, are you saying there should be no paper money? Just gold (and silver?) coins? Or paper money convertible to gold?