Melman on Gold & Silver
April 2017 by Leonard MelmanA matter of some serious concern has developed in the relationship between the prices for gold and silver and the performance of mining share averages.
Once again last month the world seemed to be tottering uncertainly on the precipice of whether to continue with some manner of austerity in order to begin restoring government balance sheets to some semblance of fiscal conservatism or whether to openly return to the previous eras of wide-open stimulation via debt, deficits and unlimited money creation.
Next, 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.
One last subject is the performance of gold and silver themselves—which has been positive for more than two months—and to explain the reasoning behind these rallies.
Long-term, the outlook remains very favorable—but the obvious and important question is when we might expect a solid bull market revival to take place.
...frankly, the question is being asked, "How in the world could otherwise rational people even consider investments in the yellow in the yellow and white metals?"
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