Melman on Gold & Silver
March 2011 by Leonard Melman...rising inflation has been perhaps the greatest single positive influence during past golden bull markets, and the fires of inflation, particularly those driven by rising food prices, do appear to be glowing ever brighter.
Occurrences such as these have proven, time and time again, that gold possesses the attribute of maintaining significant value over time, something that cannot be said of unbacked, fiat paper money where every such issuance has eventually deteriorated throughout history into virtual worthlessness.
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.
…we cannot ignore the fact that several of the most widely-followed and respected economic voices are now raising questions about the potential near-term development of a full-blown market panic.
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.
Just as we were sitting down to write this column, a political bombshell was released when Rick Santorum announced he was terminating his efforts to win the Republican Presidential nomination, virtually assuring the nomination will be to Mitt Romney. The remaining candidates, Ron Paul and Newt Gingrich appear to have no realistic chances.
The Bawl Mill • So You Want To Be A Full-Time Prospector? • Ask The Experts—Do I still have rights to this mining claim? • Ask The Experts—What is a "closed" claim? • Eastern Arizona: Gold and Base Metal Deposits Part II • Rediscovering Placerville, California Part II • Prospecting With The Help of Fluvial Geomorphology • Oregon Anti-Dredging Bill • Mud Men: Pocket Miners of Southwest Oregon Part II • The Gold of Plumas de Oro • Mining Stock Quotes and Mineral & Metal Prices