Gold & Silver

Our argument is not that gold makes a bad investment or that no one should own gold but, rather, that gold does not work well as inflation protection but, rather, that the price of gold moves based on investor sentiment

The US dollar, as the world reserve currency, is still the driver of silver, gold, and inflation pricing and the charts below show that they should now be ready to run based on the USD topping and then dropping in "price".

After reading recent articles by others and listening to what continues to pass as ‘fundamentals for gold’, I think it might be helpful to restate, and elaborate on, two specific things which gold is not: (1) Gold is not an investment and (2) Gold is not a hedge against inflation.

Gold investors are right to wonder what effect, if any, Basel III will have on the gold price. Our take is that...

Such high inflation expectations could very well see Gold bust up through that red downtrend line pretty easily to perhaps as high as $2,100/ozt.

It’s time for our annual silver quiz! See how many you can get correct (answers at the end), and more importantly, consider what the data suggests may be ahead for the silver price over the next few years…I will start easy, but let’s see if I can stump a few silver bugs by the end.

Any talk of “a return to normalcy” is nonsense. We are emphatically not headed in a normal direction.

The best time to buy is when there is “maximum pessimism,” and the best time to sell is when there is “maximum optimism” and, right now, I see gold as the ultimate contrarian investment.

Over the past 120 years the gold:oil ratio has been a reliable indicator of when to invest in oil and when to invest in gold so what is it saying these days?

You can buy gold (or silver) or you can be a deer in the headlights. It’s a pretty clear choice.