Wow, silver prices plunged and gold also dropped on Tuesday. Specifically, silver went from $22.90 to about $22 per ounce during the first two hours of trading on the New York spot market. That’s about 3.5 percent. (Gold only dropped half as much.) To put 3.5 percent in perspective, it’s the equivalent of the Dow Jones dropping 1340 points right after opening. So you can see why I called it a “plunge.”
If you are a buy-the-dip person, this is a dip. Of course, prices could dip further or bounce back. Good luck trying to call it.
What I find surprising is the drop in precious metal prices means the dollar is strengthening. Granted, it is only strengthening against a basket of other fiat currencies, but who is fooling themselves enough to think the U.S. and its financial position are strong? How badly off must all these other countries be if we look better in comparison?
The “experts” are attributing this to higher-than expected inflation which they believe will potentially delay the Fed’s decision to lower rates. This caused the stock market and other asset classes to drop as well. Even Bitcoin was significantly off its recent highs. I’m not an expert or an financial advisor, but I find swings like this concerning.
Makes me glad to be a prepper.
