Money & Markets
In all the years I have been writing this column (approaching 35) and in my writings elsewhere, I have to admit that I never foresaw the kind of immense changes that have been wrought during the past two months…
There seem to be two possibilities for the future of this disease and either way there will be an effect on the price of gold.
If we watch the action in six important markets, then we must conclude that there is, indeed, cause for deep concern.
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.
It should come as no surprise that gold and silver acted similarly, rising sharply during the early hours of the crisis and retreating as tensions abated.
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?
…there is now concrete evidence that growing numbers of investors and other concerned observers are now turning to gold as a storehouse of value in these potentially troubling times.
…the men sought to “inject false and misleading information about the genuine supply and demand for precious metals futures contracts into the markets, and to deceive other participants”…
When one of the major currencies in the world begins to decline steadily, based on monetary history we would expect a bias toward positive movements in the precious metals.
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.