Ah_Meng
06-05

$MAG Silver(MAG)$ This is one of the hottest trades in town... June has kicked off as well for me as it can be... gold took off due to the great Trump uncertainty... known now as the TACO (Trump Always Chickens Out)[Facepalm]  [LOL]  [Chuckle]  [Evil]  trades... silver and platinum did not just take off, but flew... 

Why? 

The weakness of USD due to the US "big and beautiful spending bill" promoted by Donald Trump. As a result, USD continues its downward spiral as discussed a couple of weeks ago. USD treasury is no longer as safe as perceived... having said that, now is still not the time to go all in for the demise of USD. The trust has weakened, but not yet broken... don't believe me, ask Warran Buffett! [Chuckle]  [Evil] $Berkshire Hathaway(BRK.A)$  continues to stake more into USD Treasury. 

Something else happens during this period. Risk based equity flew... just look at$Palantir Technologies Inc.(PLTR)$  and$NVIDIA(NVDA)$ or even $Navitas Semiconductor Corp(NVTS)$! They are anti-thesis as far as gold and silver theme is concerned.

So what's going on? There appears to be two forces at play. The answer appears in a @Shernice軒嬣 2000 post earlier today, titled "Treasury Drops $10B in Record-Breaking Debt Buyback-QE in Disguise?" 

If indeed money printing on the side is taking place, it makes so much sense for both simile oppositing trades are happening at the same time! People are running away from USD as printing will only grow more in order to absorb more of its own Treasury (with less interest from foreign sovereignty), not less. This will nevertheless driven up the prices of precious metals group. Hot money from the printing will find its way into the market to drive up speculative buys!

So, going away in June this year might miss one some exciting times... only time will tell if I am right to stay in June for the CHICKEN show [Chuckle]  [Evil]  [Silence]  [Cool]  [Facepalm]  [Spurting]  [Tongue]  

@Tiger_comments @TigerStars @CaptainTiger @Daily_Discussion 

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Comments

  • Shernice軒嬣 2000
    06-05
    Shernice軒嬣 2000
    When gold rallies hard, silver and platinum often follow due to their relative affordability and dual use (both precious and industrial).
    • Ah_Meng: 
      Definitely... definitely... gold-silver ratio is also at play here... just that Central bankers can't really do silver given its much lower value. That would have crushed the market if they had entered the ring...
  • Ah_Meng
    06-06
    Ah_Meng
    Apology in advance... a couple of typos in the post that I was only made aware after I had posted it [Facepalm] [Spurting] Like Warren Buffett, which I had misspelt... talking about Chicken out... I had actually chicken out on my Tesla shorts calls option last night, given that I was made to close position previously to cut losses... sigh... I could have trusted on a 3rd time lucky trick... [Tongue] [Cool]
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