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.

Fundamental information on gold and silver turned more to the bullish side this past month, and we can point to three particular items as the basis for that conclusion.

Our initial thought is simply this: why create these artificial currencies, unbacked by any material wealth, when the two items that worked so well century after century—namely gold and silver—are still fully available?

We’ll conclude by digging a bit more into the regulations and pitfalls, and discuss what they are used for, their relationship to gold, and what the future holds.

One of the most rewarding features of technical analysis is when clear signals are fulfilled by the market and also when those signals conform to the bulk of fundamental information.