Daily Silver Blog: June 28, 2017 - Dollar haemoraging!

Dollar continues to bleed today and was down another 48 cents. This was on top of a loss of $1.05 yesterday. As we can see from the graph ($DXY), the dollar index has broken the short term support 50 percentile and is clearly in a downward trend. Next support will come at 93.20 and that is a steep fall.

The decline in dollar should have made gold and silver jump but it didn't happen. Gold closed around $1,250 up about $2.20. Silver performed a bit better (as is expected) and closed at $16.84 up 14 cents. Both gold and silver are showing an incredible amount of resilience.

Cryptos, however, had a field day today with Ethereum up almost 32% for the day and was up at around $308 at the time of writing this blog. I do remain cautious on Ethereum for 1-2 more days. It has to maintain this level convincingly, if a significant higher leg is to be achieved, which it will sooner or later. I think cryptos might just get a moonshot within a month or so, as increasing number of people are realizing that Bitcoins are anyday more safer than dollar. Australia and India has already legalized the use of Bitcoin. China, Korea and Japan continue to find comfort in Bitcoin due to either government controls on local currencies or poor monetary policies that are eroding the wealth of citizens. Illinois state is almost on the verge of bankruptcy and people are regretting not investing in cryptos. I think cryptos have a long way to go. What will be the future form of digital currency is still up in the air.

While oil was up another 53 cents closing at $44.76 per barrel, I continue to be bearish on oil and am expecting to fall below $40. There is just not enough economic activity for the price to rise. Rising shale oil output is going to continue put pressure on oil.

On other news front, Walmart is now declaring war against Amazon and has issued warning to truckers that if they move goods for Amazon then they will not be used by Walmart. This is beyond ridiculous and is clearly a sign that Walmart has lost its mojo and soon to lose its market share.

Most ridiculous news was that Warren Buffet dubbed the new healthcare bill as the bill for rich as it would cut his taxes by 17%. Well, Warren if you are so fond of giving taxes and helping poor then why don't you instead of cutting side deals with Goldman Sachs and the likes to screw the poor. I used to admire Warren's investing principles and brilliance but it now has become clear that he is rich because he has money to throw around and he misguides people to maneuver into a better position. He got money because his father was a firm believer of gold and silver. He has been poo pooing gold and silver for ages while secretly amassing a large amount of silver. Yeah, that was a surprise for me as well. Frankly Warren - die already!, we don't need more double talking leaches no more.

With that happy note, be prepared and be safe!