Melman on Gold & Silver
December 2013 by Leonard Melman...this debacle may easily lead to disenchantment with government programs in general and politicians of all stripes in particular. Historically, that kind of unrest has been positive for precious metals markets.
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.
...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.
Long-term, the outlook remains very favorable—but the obvious and important question is when we might expect a solid bull market revival to take place.
This is welcome news. Many silver market commentators have stated publicly that the price of silver, currently hovering around $23.50 per ounce, should be much higher due to the scarcity of supply and the lack of faith in fiat currencies such as the US Dollar.
There is no question the economy will not always be as good as it is now. There is also no doubt that someday the lack of exploration and the ore in existing mines running out will come home to roost.
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