Melman on Gold & Silver
August 2020 by Leonard Melman
The ultimate resolution of this apparent contradiction between fundamental news and market performance could provide us with important future clues for gold and silver.
If the government can totally ignore the reality of exceeding the national debt limit, we can only wonder what all the current fuss relating to extending that limit is all about.
These moves were the first serious interruption to the bull market, which had not encountered a serious decline since the election of November, 2016. Since general market moves have been one of the most reliable historic indicators of precious metals market moves, we take a close look at these developments.
While gold’s chart has recently confirmed its short-term negative trend, the intermediate trend remains neutral while gold’s long-term chart is beginning to show some positive indications.
According to some experts, after the peak is reached, the production rate will slowly decline until it reaches near zero while the price shoots upward. At that point, we will have pretty much mined all the economic ore deposits that are present on the planet.
On a similar vein, while the number of new non-farm jobs created rose by a modest 156,000 in September, it must be pointed out that Goods Production Payrolls rose by only 10,000 jobs while much lower paying service jobs accounted for the other 146,000.
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