Melman on Gold & Silver
February 2011 by Leonard MelmanI hope long-term readers would agree that while your columnist does occasionally carry some arguments to an extreme length, I usually stay within the bounds of reason. I am pointing this out because I was struck by an economic vision a few days ago that could test those bounds.
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.
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.
We have been concerned for some time about the growing roster of laws, rules and regulations under which the entire industrial complex must operate…
If precious metals miners and prospectors were looking for a series of dramatic events to usher in the first two weeks of 2016, they have not been disappointed.
Some financial commentators have speculated that bitcoin and other virtual currencies have captured a portion of funds that would have been invested in gold. I find it a bit ironic that people who invest in precious metals would even consider another fiat currency.
I find it difficult to recall a period when the world has encountered so many simultaneous threats which “should” have driven gold and silver higher, and yet the precious metals markets—so far—have failed to rally to any significant extent.
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