What does this have to do with precious metals prices?
Bear with me through the following as we will end with a connection to the metals market.
We’ll touch base on a lot of “rumors” that have been floating around out there lately, beginning with the week before Bin Laden’s surfacing.
That Friday, Obama’s approval ratings were at the lowest point they have ever been. Another low was reached by the US$ on the same day. That Sunday, Usama Bin Laden was found and killed in Pakistan, Obama’s ratings spiked along with the value of the US$, and the beginning of the silver correction started. The white metal came tumbling down from as high as $49 to a recent low of just over $32 last night.
Around this time, Geithner accomplished some creative accounting and bought a little more time for congress to figure out the debt ceiling. The new deadline is August 2nd, a three week extension from July 16th. A date which would have the current debt limit reached just three days after all the hedge fund money meets in Las Vegas on May 16th. That’s next week people…
We currently have US treasuries up for auction, buyers need to be found in order to gauge just how much higher we can raise that debt ceiling for ourselves. They needed a hall of mirrors, and the one created could not have been better. The media has been plastered with updates on the Bin Laden situation, and not much on our current financial situation.
Some have been saying that the silver drop has been influenced by powers much higher than just the CME, and could have came down from the President himself, Barack Obama. This is a rumor that can not be verified.
Did Obama influence the silver price fall?
CME is in Chicago….
Maybe the answer will be given by David Axlerod, Obama’s senior adviser. Axlerod is also a keynote speaker at the SALT convention in Las Vegas right now. The same convention that is being sponsored by the CME and other major players within the financial realm. Axlerod has longtime ties within Chicago, just as Obama does. What many don’t realize outside of financial professionals is the importance Chicago plays within the financial realm. Former President G.W. Bush and Colin Powell will also be present. Take a look at the home page and put your own thoughts together when you see who the sponsors and speakers are.
Find the home page here;
As fast money was shot live on location in Las Vegas, breaking news was coming out all day about Raj. The hedge fund manager that was found guilty on all 14 counts he was charged for involving insider trading.
Hopefully, at least some of his colleagues had a drink for him in Las Vegas as he could not join the party.
Secondly, Market is also a sponsor at SALT, the place you can go to buy shares of that private company involved in social media… I think it’s facebook.
Ultimately, metals values and silver mainly, can not be this high for the US dollar to rise as needed in order for these treasuries to sell.
One thing made evident by all this is the value of gold, and that the Fed., CME or whoever can not effect gold as they do silver.
In spite of the recent correction in commodities, central banks have not sold any precious metals, if anything they have been buyers. Gold has held steady around the $1,500 mark and is still on pace for higher prices by years end. Mexico has recently made the largest purchase of gold in their history.
Precious metals will continue to rise, just be prepared for the volatility going forward. If your scared away, just as some would like the portion of the population that has woken up to the value of metals to be, you could end up putting your wealth at risk, as gold is proving itself once again for an avenue to preserve wealth.
Forgive the erratic form of this writing, this was more of a list of things to make you go, hmmmm……