What The Deficit Just Did Should Worry You (But Are You Stacking Silver?)

Summary

The U.S. national debt is rapidly approaching $36 trillion, contributing to a growing fiscal crisis, with October's deficit hitting $257 billion. Despite these troubling economic signs, gold and silver are in a corrective phase. Silver, having recently dipped below $30, shows signs of an oversold condition and bounced off a key Fibonacci retracement level. This technical support suggests a potential rally, presenting a buying opportunity for investors. While no one can predict the future, current market conditions suggest silver could rise, making it an attractive option for those seeking long-term investment opportunities.

Takeaways

• 😀 The US national debt is approaching $36 trillion, a historical milestone.
• 😀 The rising US deficit, which hit $257 billion in October 2024, is contributing to the growing debt crisis.
• 😀 This deficit level is alarming, especially since it's approaching record highs from the pandemic era in 2020.
• 😀 Both profligate government spending and rising interest costs driven by inflation expectations are fueling the growing deficit.
• 😀 Gold and silver are currently in a corrective phase, despite the looming debt crisis and rising inflation.
• 😀 The US dollar index (DXY) rallied following the election of Donald Trump, driven by optimism about addressing the debt crisis.
• 😀 Many silver stackers lamented not purchasing more silver when prices were lower, but there is now an opportunity with silver dipping below $30.
• 😀 Psychological factors play a role in silver investment behavior, with investors often buying high and selling low during corrections.
• 😀 The silver chart shows a key Fibonacci retracement level at 61.8%, which may signal a potential price rally after touching this level.
• 😀 Silver is currently in an oversold condition, as shown by its relative strength index (RSI), suggesting that prices may rise soon.
• 😀 The video encourages silver stackers to take advantage of the dip in silver prices and purchase while the market is still favorable.

Q & A

What is the current status of the US national debt?

The US national debt is on the verge of surpassing $36 trillion, with projections suggesting it will soon cross the $37 trillion mark. This rapid increase in debt is a significant concern for the economy.

What is contributing to the growing US budget deficit?

The growing deficit is largely fueled by two factors: high government spending and rising interest costs. These interest costs are driven by increased inflation expectations.

How does the current deficit compare to past years?

The deficit for October 2024 hit $257 billion, which is close to a record high for the month. The highest recorded deficit for October was in 2020, during the pandemic-related spending surge.

What is the significance of the growing US deficit for the US dollar?

The growing deficit is seen as an ominous sign for the US dollar. A higher deficit, combined with increasing debt, could potentially lead to a decrease in the dollar's value in the future.

How have gold and silver performed despite the growing US debt?

Despite the rise in US debt, both gold and silver have been in a corrective phase. They have not surged in value as might be expected given the debt situation.

What is the speaker's view on the effectiveness of government efforts to manage the debt crisis?

The speaker expresses skepticism about the ability of the current administration, particularly with figures like Elon Musk and Vivek Ramaswamy, to effectively manage the debt crisis, noting that debt is a complex mathematical issue.

What is the current trend in the silver market?

Silver has recently seen a significant drop in price, falling below $30, although it has since risen slightly. This dip is seen as a potential buying opportunity for silver investors.

What is the importance of the Fibonacci retracement level for silver?

The 61.8% Fibonacci retracement level is an important psychological and technical support level for silver. Silver recently touched this level before bouncing back, suggesting it may be set for a rally.

What does the Relative Strength Index (RSI) indicate about the silver market?

The RSI indicates that silver is currently in an oversold condition, with the index dipping as low as 31. This suggests that silver may be poised for a price increase, as oversold conditions often lead to a rally.

What is the speaker's advice for silver investors during this dip?

The speaker encourages silver investors to take advantage of the current dip, as it presents a buying opportunity. He warns against the psychological trap of buying at highs and selling at lows, which can lead to losses.