The fiat Federal Reserve note (i.e., fiat US dollar) continues illustrating relative strength versus other full fiat currencies. The last time the fiat US dollar was this relatively strong was nearly two decades ago, in the summer of 2002.
Meanwhile, quickly rising US mortgage rates have now put a full damper on home sales to the lowest levels in 22 years. And it is all for good reason. People are being priced out of US real estate.
Two years ago, the 30 year mortgage rate was 2.96% and today the 30 year mortgage rate is 5.60% and the median existing-home price is $404k.
With a 20% down payment, that’s an 81% increase in monthly payment (from $1,026 to $1,855).
If we are ever to get back towards 2011 levels on this chart, silver and gold values will need to outperform real estate for many years.
Here is a bond trading billionaire and exponential silver price by 2031 silver bull Scott Minerd, explaining one of his biggest investing lessons from 1980.
In the face of fiat US dollar strength this week, silver and gold traded downwards.
The daily silver spot price closed just above $19 oz, while the daily gold spot price finished this week just over $1750 oz
The gold-silver ratio ballooned into the 90’s to close last week’s trading, a historically high level.
Ongoing silver bullion import figures into India keep growing in size. Reports this week claim just over +263 million ounces of silver bullion will make their way into the world’s biggest silver-consuming nation in 2022.
Of course, we still have 1/3rd of the year 2022 remaining, so we shall see if these massive figures are accurate by Q1 2023.
Bullion buyers with relatively strong fiat US dollars to spend continue to do so as current spot prices are at reasonable levels.
That is all for this SD Bullion Market Update, as always to you.
Take great care of yourselves and those you love.
