'Consumer confidence in the U.S. unexpectedly sank and home prices stagnated, showing why the Obama administration and some Federal Reserve policy makers are pivoting to stem a housing slump that is threatening the economic recovery. The New York-based Conference Board’s household sentiment index slumped to 39.8 in October, the lowest level since March 2009 and less than the most pessimistic forecast in a Bloomberg News survey, the group’s data showed today. Property values in 20 cities were little changed in August from the prior month and down 3.8 percent from 2010, according to S&P/Case-Shiller. “The outlook continues to deteriorate,” said Yelena Shulyatyeva, a U.S. economist at BNP Paribas in New York. “It’s not good for confidence when people see their main asset, their homes, decline in value. Our best-case scenario is we’ll muddle through.”' http://www.bloomberg.com/news/2011-...dence-unexpectedly-drops-to-two-year-low.html
How people can think the economy is not sucking and going to continue to deteriorate just shows they are economically blind. The U.S. economy is tanking.
*This* is tanking: GROSS DOMESTIC PRODUCT: FOURTH QUARTER 2008 (PRELIMINARY) Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- decreased at an annual rate of 6.2 percent in the fourth quarter of 2008, (that is, from the third quarter to the fourth quarter), according to preliminary estimates released by the Bureau of Economic Analysis. http://www.bea.gov/newsreleases/national/gdp/2009/pdf/gdp408p.pdf This is not: Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 2.5 percent in the third quarter of 2011 (that is, from the second quarter to the third quarter) according to the "advance" estimate released by the Bureau of Economic Analysis. http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm
Yes is it: 'The U.S. economy grew in the third quarter at the fastest pace in a year as Americans reduced savings to boost purchases and companies stepped up investment in equipment and software.... ...The biggest drop in incomes in two years, along with declines in home prices and consumer confidence, cast doubt on whether the increase in spending can be sustained. ' http://www.bloomberg.com/news/2011-...ster-pace-as-consumer-spending-picked-up.html The U.S. economy is 60-70% consumer driven. So if it grows, that usually means consumers drove it. And as the article confirms above - consumers had to diminish their savings to push the GDP up...which is totally unsustainable. Mixed in with the fact that wages, savings, consumer confidence and housing prices are ALL dropping, government debt is rising, unemployment is stuck at 9+% and inflation is rising (with this September's the 3'rd highest Sept. inflation rate since 1990)... http://www.usinflationcalculator.com/inflation/historical-inflation-rates/ ...if you want to say that is not an economy tanking - go ahead. I'll stick with 'the U.S. economy is tanking' - slowly (as gov't. money 'printing' keeps trying to prop it up)...but it's tanking. Have a nice day.
And I will take the EU bailout which (probably) boosted my silver by about 5%. http://silverprice.org/silver-price-history.html
I've been hearing that since about Jun 2009 now. But it very well could. We have a fanatical minority in control of the House that is determined to see the economy fail through the Nov 2012 elections, so I wouldn't be surprised to see another debt ceiling extortion fiasco kind of thing.
But the tanking began with a New Dem POTUS AND 2 YEARS OF DEM CONTROL OF HOUSE & SENATE (Dodd Frank era)
Roughly...but who cares? I didn't buy anywhere near it's peak (which was a speculation aberation). It also makes it up 39.41% for the last year and 94.98% for the last 2 years. Gold is up 65.39% in the last 2 years btw. http://www.goldprice.org/gold-price-history.html Two years ago the DOW was around 10,000 and now it's 12,208.55 - about a 22% rise. http://www.theglobeandmail.com/globe-investor/markets/indexes/chart/?q=djia-I So silver has outperformed the DOW by over 4 to 1 (gold almost 3:1) over the last 2 years - though that ratio may drop a bit over the medium term.
Having typed that - even if someone bought right at $49...I still think they will do much better then the DOW in the long run. Imo, monetary instability and inflationary concerns drive up precious metals. And no major western government or central bank (that I am aware of) has stated they intend to stop 'printing' money or keep interest rates 'artificially' low. Heck, Bernanke has promised the Fed will keep them low for at least two more years. Gold and silver should (imo) do fine as long as interest rates stay low and government's keep running huge deficits (especially the former). They will flucuate and I think silver and gold both this year got way ahead of themselves. But they should give solid returns (with gold probably being the much safer bet). But when interest rates start to rise noticeably...I would sell...FAST. But I AM NO EXPERT IN THE SLIGHTEST.
If they bought for the long haul...they should be fine (in my HUMBLE opinion). If they bought for a quick buck...they were ignoramuses and got what they deserved. Investing is not for children.
I'm not against folks holding some gold or silver as part of their investments. I wish I had. But it is when people claim or imply that gold or silver is a safe hedge against inflation is when I object. Gold and especially silver prices can vary wildly.
Sure they can - earlier this year is a good example for both. But gold and silver traditionally do well when there is monetary and inflationary instability. Both of those have been true for much of the last ten years - ever since Alan Greenspan decided to try artificially low interest rates to stimulate the housing market back in 2001. http://www.wsjprimerate.us/wall_street_journal_prime_rate_history.htm And, imo, as long as interest rates are 'artificially' low and the money supply continues to expand rapidly - gold and silver should continue to be solid investments (with many fluctuations though - especially silver). Personally, I have ZERO intention of holding gold/silver forever. Just until interest rates start to noticeably rise...then I am OUT. Though I am NO expert.
