Jordan Roy-Byrne CMT, MFTA

A few weeks ago we wrote about the true cause of hyperinflation, which is a major break or failure in the bond market. It has nothing to do with demand, bank lending or the velocity of money as many have suggested. It is a confidence issue….

…I look at many things to track sentiment. In terms of Gold we have COTs and various sentiment surveys among other things. The ISE put-call data has been the most reliable…

…Interestingly, the best value is now at the very bottom of the food chain. Some people call these the crap juniors or the garbage juniors. I refer to them as the lower tier juniors…

….Investors are the most bullish on the dollar since the collapse of Lehman Brothers Holdings Inc. on speculation the U.S. economy will expand at a faster pace than in Europe and Japan, a survey of Bloomberg users showed….

Commentary on Copper, Platinum, Gold and Silver…

Hyperinflation occurs when a country’s bond market breaks. In other words, the sovereign nation is no longer able to fund itself. Its bonds fall (yields rise) to the point where the government has to print money or default….

BMO Capital Markets predicts silver will average $20 per ounce this year and next, and is expected to decline to $15/oz in 2012…..

Gold and Euro analysis from Ashraf Laidi…..

Throughout this bull market, Silver has formed the same corrective pattern over and over again. Currently, Silver is repeating the same pattern but on a much larger scale. Note that Silver’s decline in 2008 and ensuing recovery are a larger fractal…..

….Does that translate to immediate follow through this week? Not necessarily, but it one has to think that is bullish as we are nearing spring….