Silver American Eagle (BU)

How a strong dollar effects the price of silver. Silver is down $8 over the last 7 months. Silver and gold prices are both down due to a stronger US Dollar, and on top of that we are in a recession. I talk about how the price of silver will be affected in the future. I also talk about why the US Dollar appears so strong. The USDX is measured against 6 other currencies and the main one is the Euro. I believe that we have not hit the bottom yet for silver and that it will continue to go down. I talk about why the silver price is down and what it will take to move silver back up. I also talk about where I think the price of silver is going in the coming years. If you are silver stacking or investing in silver, then you need to look at the long term. Silver and gold are an inflation hedge, and I am still stacking them hard today! Silver price 2022 can change quite a bit from where it is now. This silver price drop can be seen as a buying opportunity for silver stackers to pick up more silver coins and silver bars at a discount.

Strong dollar and its effects on silver price

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We are seeing currencies drop in value such as the Euro, pound and Japanese yen, while the US dollar maintains its strength. What does this do for USA? Well, a strong dollar means cheaper imports for companies who import from the EU and Japan. Though these companies are getting goods at a better price we are not seeing the prices reflect on the retail side. Where food, clothes, furniture, wood, oil etc. have all seen prices increase. We believe US will follow suit with dropping in the future since the US accounts for nearly a 3rd of all global debt which you can read here.

“The United States has the largest external debt in the world. The total number of U.S. Treasury securities held by foreign countries in December 2021 was $7.7 trillion, up from $7.1 trillion in December 2020. As of February 2022, total US federal government debt breached $30 trillion mark for the first time in the history.”