Melman on Gold & Silver
December 2014 by Leonard MelmanAs 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.
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.
While most precious metals observers tend to pay more attention to action in the gold market as opposed to silver, there are times when the white metal can give us particularly sharp price targets going forward.
…the men sought to “inject false and misleading information about the genuine supply and demand for precious metals futures contracts into the markets, and to deceive other participants”…
The Federal Reserve just reported that inflation exceeded their 2% target for the first time in five years and the University of Michigan reported their inflationary expectations have now risen to 2.7%.
Perhaps the heart of our pro-gold thesis is this consideration: governments are inherently inefficient, they attempt to provide services far beyond their genuine fiscal ability and these trends result in deficit financing, growing debt levels and ultimate “watering” down of currency values.
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