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.
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.
For “hard money” advocates, this has been a remarkable month. Gold has risen by more than $100, silver has begun to surge, and the headlines are full of news items quite capable of raising public concerns to crisis levels.
One of the most rewarding features of technical analysis is when clear signals are fulfilled by the market and also when those signals conform to the bulk of fundamental information.
Two potentially important Canadian projects, which could have produced revenues in the billions and jobs in the tens of thousands, have now been officially abandoned and the reasons offered by both relate to the economic impossibility of successfully negotiating all the regulatory obstacles that have been presented.
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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