In terms of gold and silver, if this mountain of unbacked debt, now reaching several trillions of dollars, Euros, Yen or other currencies begins to truly collapse into an inflationary spiral, we will witness the onset of the mother of all precious metals bull markets.

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.

It appears that market softness due to a slowing Chinese economy may already have affected precious and base metals quotes.

Anyone seeking evidence that the standard leftist/socialist dogma may not work well need look no further than two western hemisphere governments, Venezuela and Puerto Rico, as both are now being wracked by financial and social upheavals.