Lower Prices Bring Layoffs
August 2013 by Chris RalphThe extensive cost reductions now being put in place are not just a short-term reaction to the recent drop in gold prices...
Occurrences such as these have proven, time and time again, that gold possesses the attribute of maintaining significant value over time, something that cannot be said of unbacked, fiat paper money where every such issuance has eventually deteriorated throughout history into virtual worthlessness.
When governments are hit by a barrage of such economic news, they usually react by attempting to stimulate economic activity by spending money, as some might say, “like drunken sailors”…
Although there is no direct connection between the price of lumber and the precious metals, there is an important indirect one due to the importance of the housing market to overall economic activity.
This collection of positives augurs well for strengthening worldwide industrial activity leading to upward price pressures and eventually rising inflationary expectations—all of which have historically positive implications for gold and silver...
On a personal level, I have been part of the business, brokerage and financial columnist worlds for 45 years, since the mid-1960s, and in all those years, I have never seen a collection of negative news items similar to what has been published during the past month. In short, taken together they may very well be describing the end of the economic world systems as we know them.
Next, all of silver’s chart action since mid-2011 has taken place under a declining trend line (dotted line), which has held for more than four years. Any trendline of that duration must be taken seriously.
The Bawl Mill • Ask the Experts • Ask the Experts • Ask the Experts • Ask the Experts • Common Mistakes of the New Detectorist • The Pearce Mineralized Area, Dragoon Mountains, Arizona—Part II • Mining for Gemstones and Mineral Specimens • Fighting and Winning Without a Lawyer • The Essentials of Dry Washing • Fortymile, Alaska Prospecting Adventure • Court Says Emergency Rule in California Unjustified • Sampling Placer Stockpiles • Prospecting Research • Buyer Beware! Counterfeit Metal Detectors • Melman on Gold & Silver • Mining Stock Quotes and Mineral & Metal Prices • Underground in the Original 16-1 Mine