Melman on Gold & Silver
August 2015 by Leonard MelmanNext, 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.
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.
I hope long-term readers would agree that while your columnist does occasionally carry some arguments to an extreme length, I usually stay within the bounds of reason. I am pointing this out because I was struck by an economic vision a few days ago that could test those bounds.
…money creation by central banks… could even accelerate further as governments desperately seek to stimulate some sort of powerful economic growth. Historically, rapid money creation rates have been positive for gold and silver.
Recent reports could be pointing toward a genuinely important change in direction for the American economy and it is a change that could be positive for the precious metals over time.
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