stormA lot of people have been asking me recently when the next crisis is going to arrive.
I always tell them that it is already here.
Just like in early 2008, economic conditions are rapidly deteriorating, but the stock market has not gotten the memo quite yet.
And just like in 2008, when the financial markets do finally start catching up with reality it will likely happen very quickly…

fedGold prices remain under pressure following of the release of Wednesday’s Federal Open Market Committee minutes.  However, famed economist Marc Faber, known for his usually “gloomy” economic outlook, says the U.S. central bank will not raise rates and may actually resort to more easing. “My impression is that the Fed will not increase rates any further this year – my impression is that the economy is actually weaker than the statistics would suggest

The weakness in precious metals – as the dollar soared – after yesterday’s Fed minutes has extended this morning as Fed’s Lacker unleashes even greater hawkish-ness. Gold bullion is back at 3-week lows, back below $1250 with its biggest drop in 3 months…

Warren Buffet bought about 129 million oz of silver at $3.50 to $4 an ounce around 2002-2003.   JPM helped him with this purchase. He was forced to dishoard at around $6 an ounce and by 2007 silver was up to $17.
This forced sale was demanded because he found that he made the same mistake as the Hunts.  Buffet believed silver was a good investment return because of its demand and supply factors and was cheap at $4 an ounce.

The US government made it clear that buying 129 MOZ of AG was the equivalent of being a heretic to the Catholic church.