| SamuelRSmith said: I could be wrong about PMs, I just see interest rates going up massively over the next 18 months, and I think we've seen the last of QE - in the US, at least, and we've had some strong rhetoric from China recently about action to quell inflation. I think the Eurozone could be the fly in the ointment, though, we'll have to look closely at that. As for the effects of the rise on the cost of silver in electronics... it really does depend on how much silver goes into the product. I have no idea. But, if you take coffee, for example, the price of coffee on the commodity markets doubling would have very little effect on the profitability of Starbucks, for example, because the cost of the bean comes to less than a couple of cents a cup. The same can be true of silver, as long as the quantities used are small. And, GM, I know... I'm not very confident in the long term prospects of GM. Ford is the new flag runner of Detroit, imo. |
Fair enough about the coffee bean thing, but i think silver will keep rising for reasons stated before.
You're right about china, and its more than rhetoric. China want out of the dollar period, cause they've guessed that they won't get paid back. They've started bilateral trade between Russia and China in their own currencies.
I don't see what western governments can do. They can't pay back their debts cause they're so large, so they'll just keep printing or default. The US is trying what japan did and it didn't work for them.
