THE SILVER SQUEEZE IS ON

Gold and silver stocks took off today, with silver jumping an outrageous 6.5%. Some of you might view this as a temporary phenomena, but you’d be wrong. What this speaks to on more of a macro level is the lack of confidence people have in the dollar. Do not look at the $UUP vs other fiat currencies, but instead look at the buying power of that currency and what is can buy you in terms of food, housing, healthcare, insurance, tuition etc.

Back in 2000, $250,000 in income registered at the 39.6% tax bracket. Today the 37% bracket is for income more than $578,000. That should tell you all you need to know about what the value of the dollar has done since then.

To offset this obvious denigration, we must invest, whether it be stocks, real estate, or collectibles. If we do not invest, our money loses value and the buying power diminishes, tossing us into the poor house.

Today’s move in silver is especially interesting but I will not make predictions, because we’ve seen this play out before, with speculators trying to squeeze JP Morgan and causing them to cover their alleged shorts. But at the same time, $BTC is near RECOURD highs and we have stocks at RECOURD highs and the values of real estate are unmoored, in spite of the higher rates that have racked American over the past 2 years.

Well, those things are about to change and rates will come much lower, which should lend credence to the precious metal, Bitcoin, and stock trade for the foreseeable future.

For the session, I managed just a 15bps gain, mostly due to being positioned in some of the outlier pockets of the market; but closed strong and fully long into what I believe will be a Monday rally.

Ciao.