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Courtesy of Bruce Pile and Dollar Daze, is this chart, which shows the backing of the monetary base in terms of the Gold held by the US. Note that 100% would mean that the money supply is 100% backed by the price of gold (at that time). The two bull markets in Gold peaked at … Continue reading

Tell this to a baby boomer or a middle aged person and they would be quite skeptical. Their neighborhood financial advisor or planner doesn’t advocate Gold. It is too dangerous. It could drop to $500. Gold stocks? Hell no! After failing to get you out of stocks not once but twice in the last ten … Continue reading

Haven’t you heard? As I type this, the US and other world economies are supposedly in nothing but increasing deflationary pressures that will not be able to be stopped by any government or central banker no matter how much stimulus or money printing they decide on doing! At least that’s what many of the talking … Continue reading

Focus on the real sentiment indicators…

It is not exactly groundbreaking analysis to say that whats good for Gold is generally good for Silver. As observers of the precious metals know, Silver tends to lag Gold but eventually catch up quickly. In the long-term sense, Silver is still a year or two behind Gold as Gold has broken above all resistance … Continue reading

Escalating sovereign debt problems in Europe has prompted some to wonder if another “Lehman” type collapse is on the horizon. As a result, some precious metals observers have grown cautious, fearing a replay of the events of two years ago. While it is always prudent to be cautious with an extremely volatile sector like the … Continue reading

The following is a brief snippet of Wednesday’s 16-page update. Go here for more information on our service and a free 14-day no risk trial. Gold Gold remains on track (as far as our template).  Here is the potential bullish outcome.  The longer Gold holds above $1160 and that trendline, the more likely the bullish … Continue reading

As we’ve discussed recently, persistent deflationary forces do not augur for a repeat of Japan circa 1990s or the US in the 1930s. Instead, because of the inability of governments to finance their current and future debt burden (there is a dearth of domestic savings and global capital), deflationary forces will ultimately lead to severe … Continue reading

Recently, I had written about how a deflationary impulse in the capital markets would be a catalyst for the gold stocks. This turned out to be accurate as stocks and commodities weakened while treasuries and the US Dollar advanced. Gold and gold stocks also moved higher. Nevermind the comments I received about how we are … Continue reading

There are numerous reasons both fundamental and technical as to why the precious metals complex will surge over the next 18 months. The sector’s surge will be reinforced by the lack of an obvious trend in most other markets. Gold, Silver and the mining stocks will surge while other markets languish. First let us look … Continue reading