Buy and Sell Signals, and Other Market Perspectives Message Board

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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives

SPY 681.53

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Dec 2 4:00 PM EST

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To: GROUND ZERO™ who wrote (52941)	7/18/2013 11:13:40 AM
From: Bridge Player	Read Replies (2) of 219600

My hunch is that from a longer term perspective, gold and silver are undergoing a bottoming process. IMO those who have been waiting for inflation to crop up have pretty much thrown in the towel, and given up, thus creating a kind of psychological bottom. There has been no inflation so far because the velocity of money in the economy has been very subdued. Banks aren't lending, in spite of their inflated balance sheets, because of numerous concerns, credit worthiness being one of them. The stock market is telling us that the economy is in the process of improving. When that fact begins to gain greater visibility and credibility, I believe monetary velocity will begin to accelerate. That will...may...cause inflation to start to show up when most have given up on it. The axiom that inflation is too much money chasing too little supply of goods is still as valid as ever. It's pretty clear that the Fed is responsible for too much money sloshing around the U.S. and other central banks are going along for the ride. The eventual result is pretty inevitable. The only question is when. To repeat my hunch...it's going to be sooner than most expect. I'm not very good at technical analysis, but just watching the price of gold and silver futures for hours on end in recent weeks, I can't shake the feeling that they are building a bottom.

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