Save those old Silver coins

www.coinflation.com    website

If you happen to collect old US Coins in the denominations of .10, .25, .50 and $1, check out the www.coinflation.com website as they list the value of the coin based on it's Silver content.

Coins produced in certain years have higher Silver content than others. You will typically find that the older coins have a higher Silver content like the 1878-1921 Morgan Silver dollar which is 90% pure Silver.  Compare that coin to the Kennedy Silver Half Dollar which is 40% Silver.

Some people are purchasing as much of these coins as they can to hedge against a possible hyperinflation environment in the coming years.  These people believe that they will one day be able to use these coins to purchase groceries at the market as the precious metal inside (Silver) will have purchasing power compared to the US Dollar. (Which is a piece of paper with green ink on it)

US Dollar Index

U.S. Dollar Index

Here is the US Dollar Index which is on a trend down which bodes well for the precious metals market, specifically Gold. (They typically trade opposite of each other) It closed at 79.33 which is the first time since March 2010. If the index should trade below the 70 level, Gold should continue to increase in value due to the dollars devaluation.

Although this is typically good for precious metals investors, it's not good as far as inflation. Prices for consumable items such as gasoline, food and daily personal hygiene items will continue to rise in price. I'm sure most people already realize this after a trip to your local grocer. Prices have gone up and product volume has gone down. It is something that you'll need to get used to should the dollar index continue to fall and Gold continuing to rise...

Gold to $1500 before the end of the year...?

Bloomberg news:

Gold Sept 27, 2010

World Gold Index, Sept 27, 2010. 7:50 PST

The chart is fairly self explanitory, a bull trend since late August 2010 with higher highs and higher lows. No significant pullbacks yet. There is some resistenace at the $1300 level, but I think that will be short lived. As long as the stochastics stay embedded (both K and D lines over the 80 level), Gold should be trading over the $1300 level within a few days/week. If the K line stochastic breaks below 80, we may see a short term pull back before closing above the $1300 level.
The goverment / Obama administration continues to print up money to get this economy in favorable shape going forward. The only way governments can assist is to print up more money to help failing businesses and bail out major corporations (like the auto industry). Another $42 billion is going to be 'borrowed' from small businesses to help put 500k people back to work and assist with the unemployment rate across the nation. It is something that is needed as people want to work. I'm not sure if these loans will get paid back, especially if the business that receives the loan continues to struggle.

$42 billion small business bill signing by President Obama on Monday With government money printing presses going, Gold should continue to rise in U.S. Dollars. As Gold goes up, you can also see it as your dollar losing value.

New high for Silver

World Silver Index XSLV on Sept 27, 2010. 6:55am PST

Not much to say about Silver and this particular chart.  Since August 24th, it has been on a bullish run with no significant pullbacks. Stochastics are embedded and it suggests higher prices going forward. It is trading over the high in 2008 of $21.35. 
As mentioned in previous posts, the fibonacci suggests that the next peak will be around the $26.25 area which may be next year...?  I would guess that there will be a few pullbacks and consolidation before reaching that level.
With the Dow, S&P500 and Nasdaq recovering from their recent pullback, the latest news is that the overall U.S. economy doesn't seem as bad as once thought. The chances of a double dip recession is less likely going forward based on economic data.  This bodes well for Silver as industrial use and demand will also pick up.

30 year high for Silver

World Silver Index

The World Silver Index closed at a 30 year high at $21.48 an ounce. Stochastics are embedded and we have a solid upwards trend. Higher Silver prices looks inevitable going forward.

Next major peak, $26.25 an ounce based on the fibonacci retracement.

A good explanation video on the devluation of the US Dollar

But first, another new closing high for Gold at ~$1291 and change.  $9 from the $1300 level.

This video explains the devaluation of the US Dollar

  
Disclose.tv - Gold VS Dollar-The Truth About Money Video