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About silversky

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  1. Copper is currently testing minor resistance from a little pull back over the last few days. If it breaks through and resumes it's rise, I can see Silver up at £18 very quickly. But it's in need of a corrective wave soon though.
  2. Yes this is correct. They're technically legal tender but that actually means very little other than that they can be used to pay debts in court. It's the discrepancy between their face value and their intrinsic value where the problem lies. Essentially "face value" is a state guaranteed minimum value on a coin or note. For uncirculating bullion (which is legal tender), it's a nominal figure which is always far lower than the actual value of the bullion, so it never becomes an issue where someone might wish to pay a debt to the court in bullion. The whole process endows bullion with the status of being legal tender, which then has legal implications around tax etc, without it ever having to be in circulation. On circulating base coins, the guaranteed minimum face value is its value, and this works fine. If the price of the base metal rises above the face value, it's a crime to melt down circulating currency. That's not been much of an issue because most of the base coinage is now steel anyway. But in the case of these special low value, high "face value", "commemorative coins", the mint cleverly used some word salad to imply that they would have their "face value" honoured. After issues with people trying to spend the £20 versions, it was made clear that they were uncirculating, commemorative coins as opposed to circulating. Given that they're legal tender, I'd love to see someone use these £100 coins to pay for their parking fines in court!! The court would lose it I'm sure because where would they get rid of them??? I've no idea what they're selling for on the secondary market but I doubt it's £100. Most people are probably too embarrassed to put them up for sale at a big loss, so I'm guessing there aren't any for sale. I can't imagine there are any buyers who want to pay £100 for a common "commemorative" legal tender token. If the mint had sold them for £120 each, and classed them as circulating commemoratives, I would have bought one for sure. They would have a minimum value of £100 with the possibility of becoming a collectors item. Instead, they're an immediate massive loss. In 100 years time, there will be a whole bunch of them knocking around antique shops for the same price as the current £5 commemorative coins.
  3. Actually it's the Royal Mint who should be in the dock for wasting everyone's time with these face value, legal tender (but of a non legal tier) "commemorative" coins. They've confused the whole bullion vs circulating vs legal tender system by adding the new high face value commemorative definition. A useless halfway house that's grossly overvalued if it were described as bullion, and worth absolutely zero as legal tender whilst pretending to be legal tender. Nice one RM! I looked into the £50 Britannia coin a couple of years ago, which I thought was a jolly nice design. It was an ounce of silver but on digging it became clear that it was completely un-spendable anywhere. Why refer to it as face value in that case?? The mint has massively confused the previously perfectly workable system, where the value in the open market of bullion or special edition coins was always much higher than their face values. Artificially slapping a £50 or £100 price tag on to something that is non returnable is a deliberate con that's being used to milk the vulnerable through adverts in the back of glossy magazines. I see it as little more than stealing from those who don't realise that they're just buying an expensive supermarket trolley token. It might be made by the Royal Mint but it's still a trolley token being presented as if it was something else. Now, if the mint were forced (through the regular banks) to accept back their commemorative edition coins at face value, it would be a completely different story. The mint would rarely, if ever, see a single one of them back but if some fool wanted to spend a rare and valuable (mint backed, BU) commemorative coin in tescos, for far less than it was worth, the local manager would no doubt be more than happy to accept them; swapping them out of the till to sell for himself at a profit. But in this case of course, because the coin is nothing more than a token with a deceptive name, it's never going to be accepted by anyone other than more vulnerable people. The entire problem is the Royal Mint's making and no nation's mint should be allowed to do such a thing to it's currency.
  4. It's a bit harder this week. There's resistance up above and a good chance that a wave down is due. That being said, I think there's a chance that a blast right through might take place. Other non pm metals have been performing strongly and imo there's an even chance that interest in silver picks up. Most still expect a wave down in silver so I think I think they'll be disappointed. My bet is for a higher close.
  5. Bets on next weeks close? Up, down, flat?
  6. On top of the crippling money printing, the Biden administration deliberately sabotaged cheap energy in the US, by ending the fracking boom and shutting down US Canada pipeline construction. Cheap energy makes everything possible, without it everything becomes expensive and the global price of oil has shot up as a result of Biden's supply restrictions. When you throw sand in your own gearbox like that, it really shouldn't come as a surprise when it stops working! A lot more to come as the cost of energy starts to bite. Complete clowns!
  7. This is an interesting little clip on the Whitehouse view of the 'transitory' inflation.
  8. Seems like moneyweek agree. Inflation AFTER stripping out food and energy (which are massively up and really really matter) is still running at 4%. If the fed are using an astronomical timescale when they use the word 'transitory', then they're correct! But in any normal and practical timescale, this inflation is not transitory. https://moneyweek.com/economy/inflation/603991/inflation-isnt-transitory-but-what-does-that-mean-for-markets
  9. They've been oversold for a while given the clear indications of inflation. How prolonged this reaction will be is anyone guess though. I still stand by my prediction of a rise by the weekly close.
  10. Well it's certainly been slow to lift off that spike low, but even so I think we'll see a rise this week.
  11. Bets for the week guys? Up, down, even?
  12. Stagflation = stagnant economy + inflation. As distinct from buoyant economy + inflation. Todays job numbers in the US were disappointing again. But paradoxically, this can be seen these days as a good thing by the gamblers in the stock and currency markets; because bad news means that the fed will pump more juice. Yay! Back in reality though, actual inflation is definitely creeping in. It doesn't matter what the fed says about it being transitory, we all know that prices for just about everything are rising. They have been for a while actually but most people hadn't noticed, until the petrol and gas issues kicked in. Real energy prices are rising, mostly because of long term silly policies regarding generation, and everything is getting more expensive to produce and transport. A lot of damage has been done in the energy sector, and this is most certainly not transitory. It's going to take years to sort out the mess, and that's IF the politicians can grow a pair and stop pretending CO2 is a pollutant. No chance of that on the horizon so inflation is definitely coming from energy costs alone. Meanwhile, the economy is faltering due to other global issues bearing down on it (many self induced). The situation is now stagnant and inflationary. I know what you mean about divining anything useful from all of these "experts". But I can't see too much downside to holding onto most real assets during a period of inflation. Better than holding cash as we all get poorer and the central printers keep on printing. That's why I think the bottom is in for Silver. It's because it's in for most physical things.
  13. Seems to me that with what looks like the dreaded stagflation starting to creep in (inflation everywhere but disappointing employment and economic activity), as other commodities rise, it's going to get harder and harder to knock silver down in the wee hours. I'm not expecting moonshots or much excitement over the next month or two. But I do think that a floor was finally put in last week and that the bears have had their fill.
  14. Bringing us a little bit closer to being on topic (wrong currency I know), the price of silver in USD has now just risen above last week's close. Price in GBP is already strongly above last week's close but that's less important than the dollar close. Last week and yesterday it certainly looked bleak. Those pesky kids were at it again, taking out the stops before running for cover. But I still remain confident in my prediction last week, that the bottom will be in by the end of this week. As reiterated yesterday at the low, I expect to see a close above last week's.
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