Buying gold and silver.

Maddog

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Trump's policies and rhetoric appear to add some additional fuel to the fire.
 


Maddog

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Why Interest Rates Are the Real Battleground

To understand the stakes, you have to look at the government’s balance sheet.

Over the next 12 months, roughly 25% of U.S. federal debt is set to mature and must be refinanced. For years, that rollover happened at near‑zero interest rates, keeping interest costs manageable.

That era is over.

With rates hovering near 4%, refinancing today would dramatically increase interest payments. Net interest expense is already the second‑largest line item in the federal budget. If rates stay elevated, interest costs threaten to crowd out everything else the government spends on.

Put simply: the government cannot afford high rates.

That’s why Powell’s comment matters so much. The threat of legal action isn’t about past testimony — it’s about forcing the Fed’s hand on future policy.

Why This Is Rocket Fuel for Gold and Silver

From a precious metals perspective, this setup is powerful either way.

If rates stay high, the government’s fiscal position continues to deteriorate — undermining confidence in the dollar and the broader system. That’s already bullish for gold and silver.

If rates are cut under political pressure, the outcome may be even more explosive. Rate cuts in a high‑inflation environment push real interest rates deeper into negative territory — a condition that has historically aligned with major precious metals bull markets.

Negative real rates reduce the opportunity cost of holding gold and silver and highlight the risks of paper assets. That’s why metals tend to respond before policy officially changes.

Markets don’t wait for press conferences. They move when the incentives become obvious.

The Bigger Lesson Governments Still Haven’t Learned

There’s a deeper issue beneath this entire episode: governments continue trying to solve a debt problem with more debt.

Artificially low rates helped create today’s debt burden. Using artificially low rates again to manage that burden doesn’t fix the problem — it compounds it.

At some point, debt must be reduced, not refinanced forever. Until that lesson is learned, precious metals will remain one of the few assets outside the system — with no counterparty risk and no political strings attached.

That’s why gold and silver keep doing what they’ve always done when pressure builds: they quietly signal trouble ahead.
 

Big Iron

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US buys Greenland for a ridiculous sum = dilutes the dollar's value even more

Gold and Silver miners are going to go bizurk after earnings in FEB. Still an opportunity there.
 

BrokenBackJack

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Back around 15-20 years ago, my brides father passed away. He had many many pounds of old coins and I offered the rest of her family to pay them whatever the coins dollar amount, amounted to. They wouldn't sell them to us and instead just took them to the bank and cashed them in, for face value.
They hated my bride because we made something of ourselves and they were jealous. Still pisses me off to this day but what is gone is gone.
 


johnr

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Sterling silver tea set worth anything?

Have an old tarnished set in the closet that I would just as soon turn into a bottle of high end spirits or 2
 

Maddog

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A Small Sale That Sent a Big Message

Last week, AkademikerPension — one of Denmark’s largest pension funds — announced it will sell its entire $100 million U.S. Treasury position by the end of the month. The reason was blunt: concerns about U.S. government finances.

On the surface, $100 million sounds trivial. And in pure dollar terms, it is. Here’s what the global Treasury market actually looks like:

US Treasuries Ownership Analysis

That tiny sliver at the bottom? That’s Denmark’s pension fund. It’s a rounding error in a market dominated by Japan ($1.15T), China ($750B), and thousands of other institutions holding a combined $9 trillion.

So why does this matter?

Institutional investors watch each other. When a conservative European pension fund publicly exits Treasuries over solvency concerns, it forces every other fund to ask: “Should we?”

If even a modest number follow-through — 2–3% of foreign holders — this could create massive ripple effects.

Why Foreign Selling U.S. Debt Matters More Than the Size

Markets don’t move on absolutes. They move on direction.

When a conservative European pension fund decides U.S. Treasuries no longer meet its risk standards — and acts on it through foreign selling of U.S. debt — it forces other institutions to ask the same question.

And if even a small fraction of foreign funds follow suit, the consequences could compound quickly:

  • Higher borrowing costs for the U.S.
  • Thinner market liquidity
  • A weaker dollar
  • Rising pressure on the Federal Reserve
Confidence, once shaken, rarely returns quietly. This is the backdrop gold is reacting to right now.
 


Traxion

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They didn't do it over finance worries they did it over the Greenland issue.
Yes but are our overall actions going to lead to financial worries? That is my concern with other countries shedding our debt.

Metals are shining in this situation, pun intended.
 

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