I’m going to start the New Year with some observations and predictions about the prices of precious metals and the events that may have an impact on those prices. I’ve already seen headlines reading “2016, The Year of Living Dangerously”, and unfortunately I have to agree. My observations are neutral and are not intended to favor one side or the other, they are just observations, but their impact on the prices of metals can’t be overlooked. You’re in for a wild ride, so hold on to your hat!
This year we elect a new president, and whatever your feelings about the current one, what is past is done. Looking at the current field on both sides doesn’t instill confidence there is a unifier in the crowd, which is needed in order to get work done. Without discussion there can be no compromise, and when there is no compromise the country suffers.
The economy tanked in 2008 (which triggered the rise in the prices of precious metals) and in my opinion hasn’t improved that much in spite of what we read in the newspapers. Consider the fact the interest rates are artificially low and the Fed is still printing money 24/7. Unemployment rates have recovered to near pre-2008 levels, but that is due in part to the way of counting people working part time instead of full time and not counting people who have stopped looking for jobs altogether. Our area is suffering more that the rest of the country due to our reliance on the casinos and the fact we lost 4 last year, and in the infinite wisdom of our legislators they are looking at building some in North Jersey which with further hurt the local economy.
On the world stage, the Middle East is a tinder box waiting for some mishap to really set it off, not that it is paradise currently. Country against county, tribe against tribe and religion against religion, what a mess. Throw in the terrorist group ISIS that has taken over parts of Iraq and Syria and is exporting their brand of terrorism to Europe and the United States. And the fighting is causing an immigration of over a million people trying to get away and seek refuge in Europe, which already had its’ financial problems.
And there are 2 bullies out there, Russia and China, flexing their muscles militarily on the world stage. Remember, bullies never pick on the big guy, they always pick on the skinny kid with glasses. Just put glasses on him and you’ll know who I mean.
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