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.
While most precious metals observers tend to pay more attention to action in the gold market as opposed to silver, there are times when the white metal can give us particularly sharp price targets going forward.
Another area of growing international concern for business and industry is the recent astonishing proliferation of new government regulations and laws. Despite the presumably good intentions behind these measures it is now becoming apparent that they are imposing true costs to our economic society. The sheer variety of these laws and regulations is mind-boggling.
The most impressive fact about gold’s performance during 2016 is the yellow metal’s ability to withstand news shocks, hold on to previous gains and gradually move to new, higher levels.
From our precious metals point of view, I would note that if the production of these metals fails to meet demand, prices will likely rise, perhaps very smartly, thereby fueling additional increments of future inflation.
It appears that market softness due to a slowing Chinese economy may already have affected precious and base metals quotes.
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.
…one thing is certain for the precious metals—these events reflect growing instability—and growing instability has historically been positive for the prices of gold and silver.
The Bawl Mill • Ask The Experts - Where can I obtain chemicals for flotation? • Ask The Experts - Can I get an update on your efforts in DC? • Ask The Experts - What equipment do I need to enter an old lode mine? • Hard Work Pays Off On Hard Rock • The Mysterious Telluride Minerals • Detecting: Getting Away From The Heat And Into The Gold • The Coolgardie Gold Mining Camp of Southern California • Gold Prospecting for Better or Worse: How Curiosity Burst My Platinum Bubble • Prospecting for Copper—What to Look for on the Outcrop • Dredging Tips and Tricks: A Measure of Water Pump Efficiency • Hard Rock 101: Small-Scale Blasting • Mining Stock Quotes and Mineral & Metal Prices