Year: 2009

So far this week has been slow in regards to commodity etf funds. Gold continues to shine while silver refuses to make a move higher.

The report is here at CNBC, c/o of Reuters.

Chris Puplava over at FinancialSense takes a lengthy look at the aforementioned question.

Gold has just breached US$1100 after a strong move following the purchase of 200 tonnes of gold bullion by the Reserve Bank of India from the International Monetary Fund. This overhang had been troubling “ye of little faith” observers of gold. The same day the Reserve Bank of Australia raised rates…

India’s deal to buy 200 metric tons (6.4 million troy ounces) of gold from the International Monetary Fund (IMF) is a huge deal – not just the fact that the New Delhi government is handing over $6.7 billion for the metal, but what it may mean for gold going forward.

Since the USA will not default, not raise taxes nor cut spending, the only logical recourse will be to print vast sums of U.S. dollars to fund this surreal foray into deficit finance. In other words, reflate.

Gold, small caps and the U.S. dollar have had a stable three-way relationship for the better part of the 2009 rally. Now the three could be parting ways.

This article suggests that silver is undervalued compared to gold by anywhere from 10% to 50% based on historical gold to silver price relationships.

This is a commentary from Steve Saville, originally posted at 321gold.com

The naysayers have said gold was ready to fall at every step of its upward march toward $1,100. But the world can’t get enough of the shiny stuff.