Yes. In fact, we have a strong copper move going on. It is said, although it hasn't been reliable in recent decades, that a bull market in stocks has a copper roof. This means we are not even at the end of the industrial stock upside, but it will be definitely slowing into a major top. During that time copper, then silver, then gold will make some mighty fine moves. I believe industrial demand is creating the move in copper and implies excessive GNP growth that will have to be curbed by the FED. When copper is finally topping, then you will see the tangible inflation. Inflationary fears will have silver and gold moving upward, though silver will get action from its industrial demand earlier. Probably silver will be the best percentage mover.
Further, I believe silver and gold would rise regardless of macroeconomic events including FED tightening. FED won't tighten so much to induce recession and that is what it will take to send the precious metals down. To some extent the FED will delay because of the rationalizations of Asia and belief that we are in an inflation-resistant era. They're both valid just enough to keep the board hawks tempered and the rate hikes small enough to let silver and gold leak upward. Then there's the absolute truth that silver and gold are just cheap relative to any comparison. So is oil.
Silver was first out with Fat Cat's buying. You know it's gotta be right when he does it. Not because he's so successful, but because it's such a remarkable shift in style that no one believes it is valid. Psychology is so good in the precious metals that they can go up on that alone! It's so good because it's been so long and even the old time gold bugs are unconvinced. They're cautious. I'm not. I'll get cautious when we get up to the major intrinsic deflationary down trend. That translates into a gold price of $800/oz and you can calculate say a $800/20 = $40/oz Si. |
