If we watch the action in six important markets, then we must conclude that there is, indeed, cause for deep concern.

...we believe that these measures will also lead to diminished profitability, diminished tax revenues and, therefore, increasing calls for massive new economic stimulation which again, by historic standards, could well work to the benefit of the precious metals.

One last subject is the performance of gold and silver themselves—which has been positive for more than two months—and to explain the reasoning behind these rallies.

All in all, these spending proposals, combined with those already approved, could bring total spending for the current budget year to around $8 trillion—by far the highest level ever recorded in America’s history.