Expecting Continued Precious Metal Strength Through Early June

goingbroke

We hear of bubbles but gold and silver are still a small part of global financial assets. The price of gold in 1980 represented four times what it is today. China may be reentering the metals markets after taking a brief seventh-inning stretch adding impetus to the upward move in precious metals. Over 19 central banks were net buyers in the year 2010. This still leaves plenty of banks waiting in the wings. Gold supplies from scrap metals fell in 2010, while gold prices were higher, signifying that people are holding onto their scrap as they feel prices are going higher.

Protection against untenable fiscal imbalances and currency debasement is one of the few ways the middle class can defend themselves. Always remember that precious metals are on a long-term rising cycle and will remain a profitable focus for years to come. Often times the precious metals cycle moves slowly yet it bends upward. Long term US debt and the US dollar are in secular downtrends.

I believe we are about halfway from the January buy signal to our $1600

derryb

Silver is a bubble, but it’s not what you think.