Agree, with my years following the silver market it looks like it needs the washout you described. The silver mining stocks are forcasting exactly that. I am giving the silver market three more years and if nothing happens in that time frame then, I will ???
Anyway think gold could move due to fear alome not just inflation, besides when you pay 75 cents for a can of coke or a pack of gum do you really think inflation is below 3% yes I know computers cost less, and tv's etc. but I still feel the governments numbers are not reality. If the usa ever had to buy gas at the same price as europe it would cause very much pain. Anyway back on track, If the asian's start to buy gold in a big way due to currency uncertainity then look out. Think what is the price of gold in baht, yen ,rubles up , up, up the weaker the currency the more the relative price of gold relative to that currency, so in dollars yes very low gold price but if you were mexican and held gold instead of pesos during the last/next devaluation then you would be very happy, everyone seems to think gold price is in us currency only it is not and in other currencies it is moving, but when it is moving up relative to the us dollar then look out. comments appreciated always;TD |
