{"id":76411,"date":"2022-12-31T01:15:11","date_gmt":"2022-12-31T09:15:11","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=76411"},"modified":"2023-01-02T22:32:56","modified_gmt":"2023-01-03T06:32:56","slug":"black-coffee-31-dec-2022","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id76411-black-coffee-31-dec-2022.html","title":{"rendered":"Black Coffee: Decisions, Decisions"},"content":{"rendered":"

\"hurricane-flags\"<\/a>It’s time to sit back, relax and enjoy a little joe …<\/em><\/p>\n

Welcome to another rousing edition of Black Coffee, your off-beat weekly round-up of what’s been going on in the world of money and personal finance.<\/p>\n

Another busy week is crossed off the list. So without further ado, let’s get right to the commentary …<\/p>\n

You can and you can’t, you will and you won\u2019t. You’re damned if you do, and you’re damned if you don\u2019t.<\/em><\/p><\/blockquote>\n

– American proverb<\/strong><\/p>\n

Credits and Debits<\/strong><\/p>\n

Debit:<\/strong><\/span> Did you see this? It turns out that there was no Santa Claus rally<\/a> this year for the US stock market. In fact, in percentage terms it was the worst year for US stocks since 2008. As for the traditional “balanced” portfolio consisting of 60% US stocks and 40% US Treasury bonds, it just experienced its worst annual performance since 1932, when the US was in the midst of the Great Depression. Meanwhile, gold and silver both held true to their safe haven status in 2022. Silver holders were rewarded with a very modest annual return for the year, while the yellow metal managed to hold steady.<\/p>\n

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(h\/t: r\/WallStreetSilver u\/BoatSurfer600)<\/p><\/div>\n

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Credit:<\/strong><\/span> Speaking of silver, I see Rich Dad, Poor Dad<\/em> author Robert Kiyosaki recently suggested that his pal Elon Musk could buy a silver mine<\/a> to ensure he has a reliable supply of the white metal for both Tesla and SpaceX, which are owned by the billionaire. Heh. Yes, I get it. “Could” is not “will” – or even “may.” Regardless, the story correctly implies that silver is indeed a very rare and important metal. One might even say “precious.” Especially since it’s mined at a mere nine times the rate of gold. Although, if silver was truly<\/strong><\/em> precious, then why is the “free” market signaling that gold is 75 times<\/strong><\/em> more valuable? Anyone?<\/p>\n

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(h\/t: r\/WallStreetSilver u\/SirWhateversAlot)<\/p><\/div>\n

Credit:<\/strong><\/span> For his part, precious metals market analyst Jeff Clark says that there is reason to be optimistic about silver returning to its true value. In fact, he says if he’s right about where the silver price and the economy are headed, “then many big-ticket items in life will get cheaper<\/a> if<\/strong><\/em> we use the proceeds from our silver to buy them.” Which items is Clark referring to, you ask? Well \u2026 he says if the price of silver breaks free and returns to its historic highs, then boats, automobiles and even airfare will all become more affordable in terms of the white metal. And who doesn’t like the sound of that? Unless …<\/p>\n

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\nCredit:<\/strong><\/span> For all you silver holders who wonder just how\u00a0affordable items could<\/strong><\/em> get if silver’s purchasing power returns to historic highs, Clark says a new car or powerboat priced in silver would sell at an 85% discount, airfare would cost 50% less, and a night at a high-end resort would be 67% cheaper. Give or take a few percent. As for those of you waiting for the right time to buy a tawny beachfront condo, Clark says when the fiat currency bubble finally bursts, you’ll be able to get one for 90% less silver than you need today. And, yes, gold’s post-bubble purchasing power will similarly increase<\/a>, as this chart infers:<\/p>\n

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(h\/t: Rafi Farber)<\/p><\/div>\n

Debit:<\/strong><\/span> In other news … it seems hard to believe, but 1 in 6 people in Illinois receive food assistance, with the average recipient collecting $245 a month. Wow. Perhaps the politicians from the Land of Lincoln should consider repealing its 1% sales tax on groceries. Then again, Illinois is just one of ten states with at least 1 in 6 residents receiving food subsidies<\/a> – that includes New Mexico, where fully one in four<\/strong><\/em> residents receive government food assistance. My goodness. Does anybody else see a problem here? If not, then how about here<\/strong><\/em>:<\/p>\n