The combination of these two concerns—the drift toward socialism and the willingness to violate law—appear to me to be capable of raising the level of civil disorder to a point where such disorders could be positive influences on the price of gold and silver.

It appears that market softness due to a slowing Chinese economy may already have affected precious and base metals quotes.

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.

The great question now is whether the correction that followed was an end to that bull market—or just a lengthy corrective phase prior to another important bullish move. Let’s turn to technical analysis of the chart for a possible answer.