Melman on Gold & Silver
November 2014 by Leonard MelmanI find it difficult to recall a period when the world has encountered so many simultaneous threats which “should” have driven gold and silver higher, and yet the precious metals markets—so far—have failed to rally to any significant extent.
The most impressive fact about gold’s performance during 2016 is the yellow metal’s ability to withstand news shocks, hold on to previous gains and gradually move to new, higher levels.
…for a change, it is time to turn away from the Trump-Mueller frenzy and concentrate once again on some of the other sources of information which can present us with valuable information related to our precious metals.
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.
After six years of primarily sideways action, gold broke decisively to the upside by breaking above strong resistance between $1,350 and $1,400 by soaring to near $1,450 before correcting moderately.
Much of the past 12 months, both in America and around the world, has been devoted to discussions of Keynesianism versus the Austrian School of economics; of the value versus risks of “Quantitative Easing,” of free markets versus government-dominated markets; and of the right of government to accede to unlimited demands on her resources, no matter the cost.
As we have noted through the years, perhaps the most direct, single influence on the future of gold and silver is their monetary opposite—currencies in general, the US Dollar in particular.
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