The US Treasury is auctioning $173 billion in notes this week. The ongoing debasement of the dollar in order to cover the immense US spending deficit seemingly ensures that the price of gold and silver is headed higher.
Treasury Note Auctions This Week
$69 Billion - 2 Year Notes - 2/23/24
$70 Billion - 5 Year Notes - 2/24/24
$44 Billion - 7 Year Notes - 2/25/24
Total - $173 billion in Note auctions this week
Last year, the US ran a deficit in 10 out of 12 months. April was a rare surpus month ($177 billion) due to the timing of the April 15 tax deadline. But regardless of the fact that the Treasury may be in surplus this month, there is little relief in their need to raise dollars via auctions.
Am I making too big a deal out of one deficit figure? Maybe. The total being raised by the US Treasury this week is lower than most recent weeks. Specifically, Bill sales are lower than most recent weeks ($215 billion this week versus $300 billion or higher weeks not being unusual.) And there are not any bond auctions this week.
Regardless, the growing amount the US Treasury needs to auction off every week to refund the expiring $34 trillion in debt and to cover the deficit is eventually going to crush the US dollar and lead to the price of gold and silver skyrocketing higher
Protect yourself from US dollar debasement. Consider allocating a significant percentage of your investment dollars to precious metals.
Personally, I am a fan of silver because it offers more leverage than gold. However. this also makes it more risky than gold as the downside moves, as well as the upside moves, are larger than for gold.
If you are interested in direct exposure to the price of silver, take a look at the PSLV etf. It's the silver ETF preferred by many silver bulls.
My favorite option for buying silver is offered by First Majestic. Their prices are competitive for all buyers, and they offer a $0.50 an ounce discount to stockholders.
Full disclosure - I'm a First Majestic stockholder (stock symbol - AG).
