Thursday, September 24, 2020

Silver drops below $23 per ounce

The current price (9/24/20 at 10:30am) is $22.88 per ounce.  The silver price was over $29 per ounce just a month ago.

What is causing this?  My uneducated opinion - everyone is fleeing to the dollar as a safe haven.  This price drop is similar to barometric pressure dropping - it is an indicator that an economic storm is coming.  Another way of seeing this is that the market got hooked on the flow of cash that has dried up, and everything is dropping - the stock market, silver, etc.  As soon as the next stimulus bill passes, which probably won't be this year, the markets will jump again.  

The value of the dollar has risen against commodities due to its relative scarcity.  This is deflationary and indicates another recession is coming.

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