Melman on Gold & Silver
June 2012 by Leonard MelmanUnquestionably, it was the other side of the Atlantic Ocean—that is the European side—that provided virtually all the political, economic and social fireworks during the past month.
...for the most part, visible price inflation has remained dormant for the most of that period of time. This state of affairs would appear to contradict both monetary history and typical cause and effect reasoning. Even the Fed has expressed some surprise and concern regarding the matter.
These moves were the first serious interruption to the bull market, which had not encountered a serious decline since the election of November, 2016. Since general market moves have been one of the most reliable historic indicators of precious metals market moves, we take a close look at these developments.
When one of the major currencies in the world begins to decline steadily, based on monetary history we would expect a bias toward positive movements in the precious metals.
We’ll conclude by digging a bit more into the regulations and pitfalls, and discuss what they are used for, their relationship to gold, and what the future holds.
In our opinion, these dizzying up and down moves reflect not so much a change in the direction of hard data, but rather fluctuations in sentiment regarding the degree of danger relating to the overall international economic structure.
The Bawl Mill • Our Readers Say • Iowa Hill District • Gold Deposition and Gradients of Placer Streams—Part I • Pursuing Rare Earths in Wyoming • The Mole • Prospecting for Copper Ores—Part I • Repair / Replace Tax Rule Changes • The Wisdom of Mark Twain—And Tales of Cheating the Unwary Prospector • Colorado Mining Association Appeals Roadless Ruling • Ganes Creek Hits 10 Years—Part II • Fifteen and Counting • Mining Stock Quotes and Mineral & Metal Prices