Written by Bryan Lutz, Editor at Dollarcollapse.com:
Yes… Sunday is here.
As I sit with my coffee, let’s clink cheers to slow, peaceful mornings.
That being said, here’s is some food for though:
Three Sunday Morning thoughts.
Sometimes these thoughts are on the economy, life, or hard assets.
If they’re helpful or hopeful to you, that’s great… Sometimes it just comes down to reality. That’s what I’m interested in…
So, here we go.
Here are three Sunday morning thoughts for you:
1. The solar panel stock crash doesn’t matter for silver. Silver will still go up. Here are three reasons why…
The solar panel industry is experiencing high-growth.
Over the past decade, solar has gone from under 1% supply of electricity in the US to almost 6%.
When you consider the size of the market, that’s huge.
Many utility companies are big on solar.
They’re buying panels.
They’re creating solar farms.
They’re installing solar panels on roofs.
And that means, solar is profitable.
So the solar industry itself isn’t really crashing, but many companies singularly focused on manufacturing solar parts, are…
Here’s one example called Shoals technology.
They manufacture solar panel parts.
After the 2020 print and pump by the Fed, all these small solar stocks went up. And then down as the bubble deflated.
Then further down as interest rates started hitting the markets by the beginning of 2023.
That’s what happened with Shoals…
As well as many others.
Silver is the main ingredient in photovoltaic panels, a fancy word for solar panels. That’s why silver is still high in demand. It’s used to manufacture these panels for large utility companies.
And now for silver prices…
Even though gold is zooming toward $2800, silver has yet to break past $30.
So you know, that’s a good thing!
You might think “Now’s the best time to buy gold. It’s going up.”
When it’s actually the best time to buy silver.
Right now, the gold-to-silver ratio is upwards of 90-to-1.
A general principle when buying gold or silver is to buy once this ratio is zooming past 80-to-1. 90-to-1 is good. 95-to-1 is even better.
That tells you to forget about these small solar crashes.
Take a look at silver.
2. The S&P 500 Commodity to S&P 500 Ratio has been at rock bottom for far too long. It makes you think gold and silver prices are coming sooner than later. But when?
Every time there’s war, or some financial crisis the name of the game is…
Commodities.
Take a looksie at this chart:
It’s pretty clear where the ups and downs are.
Commodities are undervalued when there are good times in the equity markets, but then come the crises.
When a crisis comes up, oil, silver, wheat, sugar, and gold also go up.
Since almost 2015, the ratio has been lower in than it has even been in more than 50 years!
And now it’s on a downward trend.
How long till we see a drastically sharp turn around?
Maybe, soon.
3. And now we are seeing a glimpse of what too much US debt really looks like… Check out the sudden rise in bond payouts internationally.
The US paid $205 Billion in 2024 to overseas bond holders.
Over the last five years, it jumped 49%.
Yikes!
As the US continues to issue more bonds in exchange for income…
And, as more bonds mature.
This number is only bound to go higher.
With interest on national debt rising, and the prospect of a big market crash in the near future.
All our precious metal projections look bound to go higher, which could be sooner than you think.
If you aren’t looking at the best gold and silver mining stocks, then buying some bullion is also a good idea.
