Dwight:
I am encouraged to read the popular press is attributing today's rally in gold to domestic trouble within the Whitehouse. While this will be looked upon as perhaps the straw that broke the camel's back, today's improvement has been long in the making.
Starting with a fundamental shift in demand/supply that has sufficiently worked down available supplies accumulated during the last precious-metals bull-market era, and coincident to the end of this generational bull-market for financials, today, this new era for the metals, and in particular, this first-leg, is primarily influenced by the turmoil throughout Asia.
Therefore, until recognition of that occurs, and resolution is satisfied by a new political and financial covenant reached by most of the developed world, the leg-up will continue. I do not believe, short of a return to gold as a standard, that the bull-market will have primarily run its course. And even should that transpire in the next couple years, the demand/supply equation and demographic trend may have not fully run their respective courses.
So, while it is possible we sustain this advance above $300, pull-back below after initial public exuberance, the future looks very promising.
Yours, T.V.H.
P.S. We have 297mm ounces of gold not changed in several decades in contrast to a money supply that has grown twenty-five fold, or better. |
