12/21/2012 Portland, Oregon – Pop in your mints…
As the world carries on we offer a glimpse of what is to come. Two playful headlines that have appeared in the past two days which is essentially an advertisement that inflation has taken hold and will not soon go away:
This article confirms what metals watchers have known for some time now, that the US Mint will have to change the content of pennies and nickels, at a minimum. The Nickel inflation hedge we’ve mentioned before is about to go into effect. You can read the gory details in the US Mint’s 2012 Biennial Report to Congress on the matter.
Next, we see that, strangely it seems, demand for $100 bills has begun to pick up.
It appears that the dollar debasement is hitting main street. To keep tabs on the matter, we refer you to the M2 money supply which we present below in our Key Statistics.
The debauchery of the US currency is now hitting the street, which may mean its days are numbered. Once the moronic Fiscal Cliff and the upcoming Debt ceiling redux in March 2013 are resolved, the party will begin in earnest.
We reckon that over the next few months there will be a narrow window to get precious metals at what, in retrospect, will be a bargain price. We look for the price to rise in fits and starts from early January through March, then take off through May. Part of this is seasonal, and part of it is the debauchery related above. However, it is the debauchery which will punctuate the upcoming move.
We would like to take this opportunity to send you all a big hug and wish you and yours a Merry Christmas and a Happy Holiday Season from us here at the Mint!
Stay tuned and Trust Jesus.
Key Indicators for December 21 2012
Copper Price per Lb: $3.55
Oil Price per Barrel: $88.66
Corn Price per Bushel: $7.02
10 Yr US Treasury Bond: 1.75%
FED Target Rate: 0.17% ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce: $1,657 THE GOLD RUSH IS ON!
MINT Perceived Target Rate*: 0.25%
Unemployment Rate: 7.7%
Inflation Rate (CPI): 0.1%
Dow Jones Industrial Average: 13,190
M1 Monetary Base: $2,374,000,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base: $10,428,000,000,000