SD Midweek Update: Dollar’s strong, stock market’s at record highs, and gold & silver are moving as the disrupted supply chain triggers the crack-up boom…
Editor’s Notes –
There will not be a Silver Doctors Live today.
However, do check-out this live-stream from Rethinking the Dollar yesterday (Tues, Feb 18th) if you have not already, because it is still relevant less than 24 hours later:
The good news to report is that we’re now approximately 98% caught up on emails and our posting schedule, so aside from not having a live-stream today, Silver Doctors should be hitting full stride before the week is over.
Thanks for your continued support and understanding.
– End notes
The “markets” still haven’t grasped the severity of the coronavirus pandemic.
Of course, I’m assuming the pandemic threat is real, but I’m not rock-solid 110% certain because of the simple the fact that there are still zero cases in Latin America and only one in Africa.
Something is not quite right, and with governments and health organizations all over the world telling lies, spewing propaganda, and intentionally mis-directing the public, it’s difficult to pinpoint exactly what the disconnect is.
What we know is that an Asian man flew into Mexico City from Los Angeles on January 20th, spent two days going to tourist attractions, restaurants and exploring the city, felt sick on the second day, took two Uber rides to the airport, flew out of Mexico City, and became a confirmed case of Covid-19.
This was all discussed, in detail and with sources, on Silver Doctors Live last Friday (the first topic of discussion):
Now here we are, several days later, and well beyond the currently known incubation period.
Zero infections in Mexico.
Here’s a question for the tin foil hat crowd out there, which I’m a proud card-carrying and hat-donning member of: Are we about to see an explosion of cases in Mexico which leads President Trump to discuss closing the Southern land border with Mexico, basically forcing him to commit to his political stance and stick to his guns?
If that sounds far-fetched, consider that Russia is banning ALL CHINESE from entering Russia:
That’s a pretty harsh reaction if this is just “the flu”.
Nonetheless, the tech-heavy Nasdaq hit an all-time record high at 3:15 p.m. EST yesterday:
It’s a good thing tech companies such as Apple don’t rely on China for parts, supplies, slave labor, or whatever, and it’s a good thing Steve Mnuchin doesn’t see any supply problems, because it sure is weird the stock market just hits record high after record high after record high.
Oh, wait, Apple kinda does depend on China.
From the Nikkei Asian Review just this morning (bold added for emphasis):
“On average, suppliers in the iPhone supply chain are currently operating at around 30% to 50% of capacity,” another source told Nikkei. “The constrained supply of iPhones will likely extend to April. There are still a lot of hurdles, from labor shortages to logistics transportation.“
That doesn’t sound good.
And before anybody says that’s just some anonymous “source” used in the article, here it is in Apple’s own words on Monday, February 17th (yellow highlight added for emphasis)
Apple is listed on the Nasdaq, which is hitting all-time record highs.
OK, “Hey Half Dollar, why are you all over the place today, and do you have an overall point?”.
Oh yeah, sorry, and I do: The US dollar has already been hyperinflated, only the hyperinflation currently resides in phony paper wealth, and with supply shortages developing all around the world because of what’s happening in China right now, the massive abundance of excessive paper “wealth” in the stock market is going to come rushing out and in search of real things which will quickly be in short supply, in my opinion, and even if the cartel decides to keep the “market” propped-up, I still think there will still be a mad scramble for anything and everything real that’s in short supply or at risk of being in short supply, and yet I’m seeing article after article saying to get ready for a massive wave of deflation, but understand the context, and understand what most do not yet understand – that’s deflation of phony, paper wealth, whereas the cost of real things is going higher, much higher, and prices are going higher, much higher, and in a crack-up boom kind of way.
In my opinion, consumer prices are about to really start taking off.
Of course, you wouldn’t know it with the VIX under 15:
Fear is already coming back onto Main Street, and no matter what the VIX says about Wall Street right now, and the “markets” might not be on edge, but the sheeple indeed are.
I’m expecting yield on the 10-Year Note to plummet:
The bond market bull market is not over yet, and rates cannot be raised gracefully, let alone orderly, so the bond market will simply blow-up at one point.
How close are we?
So enjoy this hilarious strength in the US dollar while manufactured goods are still cheap:
Manufactured goods will remain cheap until current stock depletes and existing supplies dwindle and the sourcing of new or finished supplies becomes problematic, at which point prices start rising rapidly.
I think tech goods and other goods manufactured in China will be some of the things that skyrocket in price.
On the other hand, assuming logistics still functions and trade between nations continues, I don’t think the prices of things which can be easily manufactured anywhere in the world will rise in price quite as fast.
For example, it is easier to ramp-up the production of socks and underwear in Vietnam or Bangladesh than it is to ramp-up the production of RAM, hard drives, and certain electronics in general, anywhere.
These are just simple examples of supply chain disruptions, and they’ve already started.
Copper could be consolidating at $2.60:
If the coronavirus threat blows over, the world is going to need a lot of copper for infrastructure, electric cars, the U.S. Space Force, and myriad reasons, but if we’re talking about economic collapse brought on by Covid-19, then at least copper is a valuable commodity that’s non-perishable.
Crude oil continues to be the wildcard:
Dead cat bounce?
I’m not convinced it is.
Palladium is on fire:
On Monday we were set-up to test breaking out of the choppy sideways channel, and break-out did we ever!
Platinum is bid:
Platinum will remain bid as deeper pocketed investors move out of phony, debt-based fiat “wealth” and move into real things.
I hope everybody sold gold for silver at a ratio of 90:
The move downward looks like it’s begun already, especially if silver shoots up in price again today.
Speaking of silver, we’re solidly above $18:
Are we finally going to get that all-important weekly close above $18.20?
Or are we going to see an upside surprise?
Either way, technically speaking, silver has tons of room to run to the upside.
Gold broke-out above $1600 yesterday:
Gold will remain bid, especially as this coronavirus creates uncertainty in the minds of every single person on this planet, leading some of them to the conclusion that it may be wise to have a little safety in the form of gold.
Bottom line as we find ourselves here this beautiful Wednesday in mid-February?
Gold & silver are showing super-strength in the face of the rising US dollar.
Gold & silver are showing super-strength despite the stock market.
A couple weeks have gone by, and investors are complacent.
Because they buy into the MSM’s “just the flu” narrative.
Whether the risk of pandemic is real or not is moot.
The supply chain disruptions are very real.
There’s too much phony wealth now.
And not enough real wealth.
Some sheeple will learn.
About real wealth.
But for most?
– Half Dollar
About the Author
U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.